Why Bonds?

There are plenty of bonds bears out there. The reasons are endless: too much supply, China will stop buying, the deficit is too big, bond prices are too high, and on and on. Here is why I'm a bond bull:

• Consumer demand for credit is plunging, and consumers are 70% of the economy.
• Baby boomers need income. Only 3% of their assets are in Treasuries. Bonds have beat stocks over the last 10 years. Who wants to put $ in CD's?
• Obama's stimulus is almost gone.
• Gridlock is a done deal in 3 months.
• Unemployment is still near record highs.
• Housing is plunging, and housing typically leads the economy.
• Factory orders are plunging.
• Consumer confidence is plunging.
• Leading economic indicators are plunging.
• With GDP set to drop to 0% by the end of the year, aren't real rates juicy? Historically, bond yields have a high correlation to GDP growth.
• Austerity from Europe will start to bite by the end of the year, if not sooner.
• Chinese banks have already reached their lending quotas for the year.

And if I'm wrong? Well, if yields spike, gold will be a perfect hedge.