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Bill Gross manages THE largest bond fund on Earth. Not only has this fund sold all of the long term US debt holdings that it once had, but now it is NET SHORT THEM!!! Not only that, but this move was made fast, too... Jan to Feb: 12% to 0%, and then Feb to Mar: -3%. Why else would you want to get out of a large position so fast?

For those that understand, you know what this means. For those that don't, prepare for the FED to resort to hitting the nitrous switch when nobody steps up to the plate to buy our debt in June. This could get very very ugly. It's like watching a plot unfold when you already know how the story can end.

Here's a great article:

http://finance.yahoo.com/news/PIMCO-goe ... et=&ccode=

Spiking interest rates as bond values plumet. QE cubed right around the corner. QE is now the disaplined monitary policy in helicopter Bens mind. Dow headed into the high teens (~16-18k). Fed running out of ink and paper to print money with. Soon to be followed, hyper-inflation and collapse of the house built by cards. Yes, its going to get ugly.

Yes they are. I cashed out last month of the last government bonds I had. Normally I get a bunch of sales crap from the brokers, about what a great rate of return I was getting for what I had - am I sure I want to sell, and what other great funding vehicles they have, blah, blah, but this time they both (two different companies) just said they would get on it immediately, and how did I want the check.

That was the most telling indication I've had that (despite what they might try to sell you based on their company party line) they themselves don't believe in them anymore.

Will they have value on the other side of the crash? I'm inclined to think not, but don't know.

"I cashed out of the last government bonds I had..."

I'm about to do the same thing.

The US bonds will have the same value as many of the old 19th and 20th century stock certificates. The advantage to the worthless stock certificates is that many have superb engraving and also some historical significance.

Can you say "Fire sale" time?

Crud. My 401K is with JPM and I cannot cashout for other reasons. Can't find a good choice in what's availible.

Mossy wrote:Crud. My 401K is with JPM and I cannot cashout for other reasons. Can't find a good choice in what's availible.

What choices does your plan offer?

Mossy wrote:Will they have value on the other side of the crash? I'm inclined to think not, but don't know.

Yes. Wallpaper.

68Camaro wrote:What choices does your plan offer?

Words. Lots and lots of words. Darn little I can figure out what they mean, aside from "this is a high risk, high profit fund" sort of general description. The print is too small for me to read easily (I'll be getting a fresnell magnifier when I find one), so I get a splitting headache trying to figure out what they mean. The descriptions enter a decision tree type outline, but the final lines are vague and dependant on interpretation.

Mossy wrote:

68Camaro wrote:What choices does your plan offer?

Words. Lots and lots of words. Darn little I can figure out what they mean, aside from "this is a high risk, high profit fund" sort of general description. The print is too small for me to read easily (I'll be getting a fresnell magnifier when I find one), so I get a splitting headache trying to figure out what they mean. The descriptions enter a decision tree type outline, but the final lines are vague and dependant on interpretation.

I can't be a financial advisor, have enough trouble advising myself, but I suspect there are enough people here with some experience that would help you decipher what your fund choices are, if you would post the fund names. Sometimes they are funds that your managing company own themselves that are designed to mimic other more common funds. In those cases, for the purpose of selection, you can just follow the common funds. For example my 401K just added a new commodities fund that is designed to copy the DJP commodity fund. So I can follow the progress of it by entering DJP on Yahoo Finance - it's not exact, but close enough to determine whether I want to use it, and if it's doing good, or bad.

Just a thought...

Thanks, Camero. I have to get the magnifier. Probably be out of touch for a week, traveling.

smalltimeopn wrote:"I cashed out of the last government bonds I had..."

I'm about to do the same thing.

Done deal! Time to buy more Ag.

Every investment has a timeframe. It really depends what Bernanke does immediately after QE2. Seeing that the money multiplier has dropped like a rock since the first of the year conditions are actually starting to become favorable for a bond rally. If the money multiplier stays weak and weekly fed data shows obvious draining of liquidity after the QE2 program. I will likely buy treasuries (which I rarely do) buy short ETFs and hold my gold positions.