$iShares barclays 20+ Yr Treasury Bd(TLT.US) There is currently a short-term vs long-term expectation gap. In the long run, the U.S. has many ways to reduce inflation by expanding oil or other resource extraction, which ultimately reflects in lower end-product prices. But the problem is, this is a process that takes time, while raising tariffs can immediately push up inflation. Therefore, against this backdrop of short-term bearishness and long-term bullishness, excellent long-term buying opportunities for U.S. Treasuries will emerge in the future. As for why I'm buying U.S. Treasuries...it's simply because the interest rates in China are too low, so I'm gradually swapping out my 30-year duration Chinese government bonds to build a dollar-denominated U.S. Treasury position locking in over 4% yield. As for exchange rate risk...I'm not worried at all, because I really don't think China can win by continuing down this path.