Marc Faber and Peter Schiff : Avoid US Treasuries

Marc Faber, the publisher of Gloom, Boom & Doom Report, and Peter Schiff, investment strategist at Euro Pacific Capital, discuss US Treasuries with CNBC.
“The bond market is the mother of all bubbles right now,” Peter Schiff says. “This decade is going to be the worst decade for bonds in US history.” If you want own Treasuries, Schiff suggests owning them in Switzerland or another country where the government isn’t as reckless as in the US. Marc Faber also advised to avoid US Treasuries he told CNBC recently : "If you look at the different investment alternatives Equities, bonds, real estate, commodities and precious metals ... I think that equities should be represented in a portfolio, in particular, if you are very bearish about the world long-term, you probably be better off in Equities than in bonds.
Somebody said before that markets are now highly correlated and that’s true to some extent but not true from other perspective. Say 2008 everything went down and the US dollar rallied and the US government bonds rallied and more recently it’s been when you have a strong day in the stock market bonds go down and so forth. So not everything is correlated and the same applies to agricultural commodities."
"I think eventually inflation will accelerate," he said. "Whenever food prices go up, and grains have been very strong recently, with the sum delay, you get inflationary pressures."

10-year treasury yields fell to 2.570%, the weakest level since March 2009. While, the 30-year bond's yield reached 2.719%, the lowest level in 16 months.

Marc Faber cited a weakening U.S. dollar as a second reason to decrease holdings in the US debt.

"(The) U.S. dollar will weaken, that's the policy of the U.S. government to weaken the dollar in order to cushion the downturn in the American economy."



Peter schiff : I am sure I can speak for Mister Marc Faber as well I have met him several times and we agree on this , I think The Bond Market is the mother of all bubbles right now when it burst the loses will dwarf the losses of the combined losses of the stock market bubble and the real estate bubble , no the problem is there is no way for the government to pay this money back the only way they can do that will be a tax increase which is just horrendous and can never be accomplished , or the government gonna have to tell people on social security or medicare that they are not gonna get their checks because the government needs it to pay interests on the debt , and it is not only paying the interest , what i am afraid is that when people realize that we cannot pay this money back we're going to be able to roll all these short term debts so it's not just paying the interest , we gonna have start retiring the principal and that just impossible so it's going to be massive inflation ...."...."this decade is going to be the worst decade for bonds in history , bonds holders are going to be wiped out..."