Bond vigilantes at the gates? Almost worse than barbarians at the gates

From yesterday’s issue of the Daily Reckoning. Editor in Chief Bill Bonner surmised that those bond vigilantes are waiting at the gates. Remember when a certain US president a decade ago said he would love to have the power of a bond vigilante? Read below:

"Bill, you've been talking about a Great Correction for months. I don't disbelieve you, but what the hell is a Great Correction?"

Well....

A Great Correction is what you get when a great many things need to be corrected at the same time. When the crisis of '07-'09 came, economists immediately began talking about a 'recovery.' But there was no way the economy could go back to being what it had been. What it had been was excessive, over-the-top and unsustainable. It couldn't go back. It had to go forward.

Specifically, it had to correct the many mistakes made by Americans who spent too much.”

AND:

“the most interesting of all” points of the correction is this, as Bill said:“The US - dollar based money system, created in '71, is surely building up for some kind of correction.”

AND:

“While the private sector generally tries to correct its problems, the public sector adds to its own. It is living beyond its means. Sooner or later, it will need to be corrected too.

When will it happen? When the bond market is ready.”

Here’s the link

Don’t get caught with a portfolio that is full of helicopter money when the bond vigilantes become vigilant. Own gold coins friends, own gold coins. For when the US – dollar based money system ends, you need to own physical gold.