Agree 100%. Didn't read your topic before I started mine. The only difference is that the U.S. $ is a reserve currency, so yields won't reach the Italian level, but 5 or 6% is doable in the next month.
Hi Guys, I'm curious, why do you think rates will increase to 5 to 6% in the next month if Uncle Ben said he isn't raising rates for 2 yrs? Please help me understand as I'm not a fulltime investor, so appreciate a response in layman terms.
We are all betting that The Fed will be unable to stop the inflation despite its best efforts. It is the conceit of governments that they can control prices of things forever. They usually can for a time but eventually events overwhelm them.
remember, they believed they could make banks make loans to people who would not pay them back by assuring that housing prices always go up and by working with wall street to "Package" enough good loans with some bad loans and making them good investment ala Michael Milkens junk bonds. They failed rather horribly, don't you think?
Now they are pricing money well below what it should be and, we believe, will be wrong once again. It could and probably will happen quickly and unexpectedly so we sit through these down times while the world panics and invests in the "Safe haven" of US treasuries and await the recognition of the reality that we are printing so much money that it's value is lessening and each dollar is worth less every day. When the world realizes that it is losing money by buying US Treasuries and that it is being done deliberately and solely to cause the inflation to get us out of the spiral of increasing home foreclosures causing houses to lose even more value. The government is doing everythig it can to cause inflation. When it kicks in, TBT goes to 200.00
Your point is valid. ben shalom bernanke can keep rates low for as long as he wants. The result of our criminal federal reserve's destructive policy has been very high inflation for the past 40 years. The BLS just lies about it and americans are too stupid to figure it out. Any problems any american has can be directly traced to the government and the fed. Unfortunately they're gullible to the "hate the rich" straw man. If we took everything from all the rich it would fund government spending for less than a year, so.... And the other guy was right that the dollar's reserve currency status is buying us more time. Ironically India and China are experiencing more inflation than we are even though we caused it all! But if ben shalom bernanke continues his perverted ways, our high inflation will turn into hyperinflation. Unfortunately what should happen is not necessarily what will happen. ben shalom bernanke is mentally sick and has trillions in toxic junk under his office chair and continues to buy more. Too bad americans are so stupid that they will agree with the hate the rich propaganda instead of the end the fed solution. So hyperinflation is around the corner because if ben shalom bernanke hasn't stopped printing by now I don't see why he would ever stop printing.