In reading an article today by Market Watch on the treasury auctioning off a record $71 billion worth of treasuries next week.
I noticed this little clip:
In addition, the Treasury said that it would reach the debt ceiling of $12.1 trillion sometime during the second half of the year.
Whenever we hit a debt ceiling it hardly gets any press. Probably because we hit the ceiling all the time. Under Bush we hit the ceiling five times! So I'm not trying to just pick on Obama here, and how Democrats love spending. Whenever one politically party gets into power, they seem hell bent on outdoing the previous party on spending. This back and forth between Democrats and Republicans has got to stop! If we could only kick them all out, alas it seems all to late.
The rate we are stacking on debt is just insane. Here is the break down of the Treasury auction:
The Treasury Department said it will sell the $71 billion in notes and bonds under its quarterly refunding auctions: $35 billion in 3-year notes, $22 billion in 10-year notes and $14 billion in 30-year bonds.
http://www.marketwatch.com/news/story/Treasury-auction-record-71-billion...
So I'm thinking, "hmmm how can I short treasuries if only there was an ETF for that.” Oh but there is!
The ProShares Ultrashort 20+ Year T-BondNYSE: TBT
I know what you are thinking they are "only" selling $14 billion in 30 year treasuries, the smallest amount out of the batch. Ahh but look at this,
It also said it plans to add a second regular reopening of the 30-year bond. In practice, this means that there will be a 30-year bond auction every month. This marked the only change to the auction calendar.
Hahaha, they are now going to be auction them off every month!
Of course you could always buy ProShares UltraShort 7-10 Year Treasuries (NYSE:PST) as well.
So the Federal Reserve will probably step up and buy some of these treasuries to keep rates low. This will only have a temporary effect. So buying these ETF's may be a one to two year play.
Of course you should be buying some Precious Metals as well to protect you from all this new debt/money.
