Here is an image of the current cover of The Economist magazine. And here is a link to today's headline story in the Wall Street Journal : "U.S. Foreign Debt Shows Its Teeth As Rates Climb" (subscription may be required!). I commented on a similar cover story in the New York Times this past June.
As you know my theory of the main stream media (MSM) is that they are in the business of telling their readers what their readers want to hear. Over and above that, the MSM are generally of an elitist bent and ardent followers of the latest fashion and fad, especially in political and economic thought. Both of these factors make them particularly good contrary opinion indicators.
Both The Economist and the Wall Street Journal are again flogging the USA debt story. For the past thirty years the MSM has been telling us that bankruptcy has been descending on the USA. Yet somehow it always seems to land somewhere else (like Mexico, South Korea, Thailand, and Russia)!!
These stories are designed to scare you out of fixed income investments. But I think they are telling us that a new bull market in bonds is underway. The price of debt is headed up!
No comments:
Post a Comment