Commodity Trade Mantra

Posts Tagged ‘Treasury bond’

Is This How the Next Global Financial Meltdown Will Unfold?

As emerging market currencies decline, income streams needed to service the dollar debt declines: as income & valuations fall, capital flees, pushing the relative value of the currency down even more, which further raises the risk premium which triggers even more capital flight. The sums in play are so staggering, even the Fed won’t be able to stop the financial meltdown.

Don't Fear Rising Interest Rates? Really?

There has been much commentary published as of late discussing when the Federal Reserve will begin raising interest rates. Generally, attached to the heels of that discussion, are comments suggesting that investors have nothing to fear from such an event. However, is that really the case? Let’s take a look.

Why We're Doomed: Interest and Debt

Even if the economy were growing at a faster pace, it wouldn’t come close to offsetting the interest payments on our ever-expanding debt. This leaves the entire Status Quo increasingly vulnerable to any sort of credit shock; either rising rates or a decline in the rate of debt expansion will cause the system to implode.

Manipulation, Gold and the Decline of the Dollar - Sprott

Bernanke has lost control of the bond market; sooner or later there will be unintended consequences to the actions of the Federal Reserve and the biggest one will be the decline in the US dollar – Expect higher Gold prices on dollar weakness among other reasons.

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