Nassim Nicholas Taleb, who is the author of the best seller, The Black Swan, said at a conference in Moscow that the investors should bet that the U.S. Treasury bonds will go down. To support this, he cites the policies of Fed Chairman Ben Bernanke and of the Obama administration in general. He has such confidence in his stance that he said that every human being should make such a trade. In a short trade, an investor sells a security, that that they have borrowed, at a higher price and then, when the time comes to return the borrowed security, buys it back at a lower price and pockets the difference as profit. Taleb said that the smart thing to do would be to bet on the long term Treasury yields, which move inversely to the price. Obama's and the Fed's policies have resulted in a flood of money. The purpose of this flood was to help to soften the blow from the recession and to help sustain the recovery. However, it has driven up the deficit to record setting levels. This, according to Taleb, will drive down Treasury securities. The deficit is being converted into government debt. If the deficit cannot be brought under better control, Taleb foresees disaster on the horizon. To help bring it under control, the government is going to have to cut spending fairly severely and the U.S. will not be able to handle it very well. During the financial crisis, Treasuries gained 14 percent in 2008 alone as the instability drove people to invest in them. As things have gotten better, their value has decreased, by around 3.7 percent. This year they have gained back about 1.17 percent. Other analysts at the conference predicted that the dollar would fall against Asian and other currencies such as the Brazilian Real over the course of the next two to three years.  "Black Swam" Expert Says To Short U.S. Treasuries Nassim Nicholas Taleb, who is the author of the best seller, The Black Swan, said at a conference in Moscow that the investors should bet that the U.S. Treasury bonds will go down. To support this, he cites the policies of Fed Chairman Ben Bernanke and of the Obama administration in general. He has such confidence in his stance that he said that every human being should make such a trade. In a short trade, an investor sells a security, that that they have borrowed, at a higher price and then, when the time comes to return the borrowed security, buys it back at a lower price and pockets the difference as profit. Taleb said that the smart thing to do would be to bet on the long term Treasury yields, which move inversely to the price. Obama's and the Fed's policies have resulted in a flood of money. The purpose of this flood was to help to soften the blow from the recession and to help sustain the recovery. However, it has driven up the deficit to record setting levels. This, according to Taleb, will drive down Treasury securities. The deficit is being converted into government debt. If the deficit cannot be brought under better control, Taleb foresees disaster on the horizon. To help bring it under control, the government is going to have to cut spending fairly severely and the U.S. will not be able to handle it very well. During the financial crisis, Treasuries gained 14 percent in 2008 alone as the instability drove people to invest in them. As things have gotten better, their value has decreased, by around 3.7 percent. This year they have gained back about 1.17 percent. Other analysts at the conference predicted that the dollar would fall against Asian and other currencies such as the Brazilian Real over the course of the next two to three years.