Several days ago, you wrote an article attacking the ideas of Jeff Nielson of Silver Gold Bull. To be honest, the views expressed by Mr. Nielson are not shared by many in the financial community and perhaps, if they gained widespread public acceptance might have political consequences. However, the article had the flavor of a schoolyard bully picking on the kid that is a little bit different. Its easy to ridicule someone and their ideas if you don’t have to face them or don’t fear them “punching back”.
We reached out to Jeff by e-mail and he was more than eager to engage you – Joe Weisenthal of Business Insider in a match of words and ideas on a neutral website. Joe, we promise to publish any articles that you write in response unedited. However, Jeff Nielson gets to start!
Please note: The opinions expressed do not represent those of Learn Bonds.
Nielson’s Critics Attack Treasury Market Theory
Given that Mr. Weisenthal repeatedly spelled my name incorrectly, I presume he’s someone not familiar with my previous work, and my extensive writing on this subject. Putting aside the spelling mistakes (no publicity is bad publicity?), I have a few qualms with Mr. Weisenthal’s attack.
At the top of the list is the fact that there is not one word in this critique concerning the question I considered so important that I highlighted it in bold: who is buying this worthless paper?
With that huge question remaining unanswered, I might have a few more words on this subject at a future date…
Here’s The Solution To The ‘Ultimate Financial Contradiction’
At TheStreet.com, Jeff Nielsen has a very conspiratorial post essentially arguing that the US Treasury market is an epic fraud, and that it’s only because Bernanke is printing money like crazy that yields on U.S. debt are so low, and that the entire thing is a scam.
It’s four pages of conspiracy-mongering, but part up front is what we wanted to address. This is where Nielsen introduces what he calls the “ultimate financial contradiction”, the fact the supply of Treasuries I so great while the prices on them are so low [sic]…