Re-thinking T-Bonds

A year ago I published my book entitled November Years – Reflections on Aging. I wrote that Wall Street had destroyed the credibility of securities markets, and it made sense to retreat into Treasury paper to reduce risk.

That was a year ago. Since then, President Obama has opened U.S. deficit floodgates, exaggerating the Wall Street mess made during the Clinton era. Now I’m worried about the U.S. bond market, and I’m not alone. Russia and China have turned to buying Canadian currency, and I believe that Bill Gross, a respected California Pension Fund (PIMCO) executive is favoring investment in Canada.

U.S. Treasury Bonds may no longer be a safe haven. I would not want to be there if or when Rating Agency downgrades come to pass.

There is nowhere left to hide, but Russia, China and Bill Gross apparently agree on Canada. Canadian Government Bonds might be the best of a bad lot.