Benchmark Treasuries: 7 Reasons to Avoid Inflation-Soaked Debt
Markets always win in the end; artificial government manipulations are palliative measures that only exacerbate the problem and delay the inevitable, according to an opinion piece on Seeking Alpha.
The author argues that a recession would not substantially lower long-term rates as most people believe. The Federal Reserve's battle with inflation has begun under Chair Kevin Warsh, who is leading the fight against rising prices.
There are seven reasons to believe long-term interest rates are headed much higher, including insolvency and inflation. With a national debt of $40 trillion (123% of GDP and 720% of revenue) and annual deficits of $2 trillion, investors may be wise to steer clear of Benchmark Treasuries.