We continue to have an aversion to long-term bonds (and may be making a serious mistake by not disliking medium-term bonds as well). Bonds are no better than the currency in which they are denominated, and nothing we have seen in the past year—or past decade—makes us enthusiastic about the long-term future of U.S. currency. Our enormous trade deficit is causing various forms of “claim checks”—U.S. government and corporate bonds, bank deposits, etc.—to pile up in the hands of foreigners at a distressing rate. By default, our government has adopted an approach to its finances patterned on that
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