if you own a bond that is paying 3% coupon, but inflation is actually 15%, then your real rate is -12%. put another way, you are letting someone borrow your money in order to pay you back less money. factoring in the time value of money for your capital return, the bond is worthless.

$130 trillion+ in bonds are premised on the idea that scenario #1 is the case, not scenario #2.

(http://www.autoadmit.com/thread.php?thread_id=4830640&forum_id=2#42432572)

austrian economics say that consumer prices are generally affected ~18 months after the monetary expansion

(http://www.autoadmit.com/thread.php?thread_id=4830640&forum_id=2#42432610)

the fed increasingly holds a lot of debt because it's so garbage that nobody else wants to touch it. the fed is now doing $120 billion in treasury purchases PER MONTH in order to prop up the market and keep rates low

soverign nations have been increasingly dumping US treasuries, especially china/russia, which have been stockpiling gold

(http://www.autoadmit.com/thread.php?thread_id=4830640&forum_id=2#42432657)

at some point they will have to initiate "yield curve control" which is basically them saying that rates of a certain duration are being frozen at X%, and they will print ANY amount of money to do that. at that point, all foreign countries can dump 100% of treasuries without losing any money. that is when hyperinflation will begin.

(http://www.autoadmit.com/thread.php?thread_id=4830640&forum_id=2#42432714)