Jekyll & Hyde

I'd like to make a few responses to my "Dangerous Waters" waters post on May 27th.  This is to show you that, no I'm not a perma-bear, I do actually want the U.S. to do well, I don't only post my thoughts when the happenings of the markets coincide with my ideas and that I look at things through multiple lenses and formulate my ideas in practical way, given the information that I have.

Without further ado...

-Corporate spreads are more important than Treasury spreads

-Rising yields could be a sign of economic recovery

-The dollars decline could be a result of investors leaving the flight to quality trade and moving back into risky assets

-Investors are putting money into foreign currencies because they show the most potential for future growth, not necessarily current stability

-Rising yields will impact growth if they get out of hand

-China needs to stop running their mouths about U.S. Treasuries.  The reason China has such a large surplus is because the U.S. buys all their "stuff".  If we don't buy from them then their surplus will shrink and they will not have the money to reinvest into Treasuries.  If the U.S. doesn't spend their money on China's "stuff" then that money will stay in the U.S. and could be used to fund our own Treasury purchases.  

-I think that too many people are automatically anointing China the new leader of the global economy.  There are many moving parts to the world we live in today and if China wants to try and make a point by not buying our Treasuries, then we simply won't buy from them and they will suffer as well.  This is why people should be worried about protectionism developing.  We are all in this together so let's function as one, or at least the best we can, and the standard of living for the entire world will rise, which should essentially be the end goal.  

A breath of fresh air from a practical bear.  I might as well savor the moment, for it will not last long.