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James Grant on the US Treasury, rates, and the dollar

James Grant is a long time observer (and chronic bear) on interest rates and has an interesting interview on Bloomberg.  And the folks at Zero Hedge point out

Grant has put together a Treasury prospectus (which we will post as soon as we procure it) which as Jim puts it "is a compendium of the salient facts about the Treasury as if it were an issuer that did not have a printing press... All you need to know about the credit risk of the US." The first risk factor, via the GAO, "improper payments that should not have been paid by the Treasury totalled $98.7 billion, equivalent to 5% of Treasury outlays." Keep in mind the UST raised $333 billion in net debt in March, as we pointed out yesterday.

The Treasury prospectus will no doubt be a barn burner, and we recall Nassim Nicholas Taleb's quote not too long ago, “every single human being should bet U.S. Treasury bonds will decline."

Keep watching long Treasury's.

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