Niall Ferguson on the Wonders of the Invisible World
Yet Another New York Times FAIL

Delong Smackdown Watch: Joe Smith on the Invisible and Insensible Bond Market Vigilantes

Joe Smith writes:

Niall Ferguson on the Wonders of the Invisible World: Yields on long US government bonds should be up over 6% on any rational basis. They are not because the would-be bond vigilantes have no place to go if they abandon the US government securities. If they give up on US bonds the only investments really left to them as alternatives are canned goods and ammunition.

There are other things the PIIGS bond market vigilantes could hold besides U.S. dollar-denominated liabilities of the United States federal government: Sewing needles... bottled water... old Tina Turner videos... bicycle pedals, magnets, and copper wire to generate electricity to play the old Tina Turner videos...

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