Socio-Economics History Blog

Socio-Economics & History Commentary

US Treasury Bond Market Collapsing Now!

  • US Treasury bond market is collapsing right before our eyes. The USD is also tanking at the same time. This is a not a good scenario. Will we see the collapse of the stock market? The answer is Yes. The stock market has reached its top and will be on its way down. Martin Weiss comments :
    A Bond Market Fiasco!
    We warned that :
    – The federal deficit would balloon toward $2 trillion and beyond, flooding the market with Treasury offerings …
    – Washington’s efforts to bail out giant companies would make global bond investors recoil in horror …
    – Treasury bond prices would plunge and interest rates would surge — pure poison to the entire U.S. economy and stock market.
    Now, this has happened too!
    The Third Phase of This Great Crisis Has Kicked in With a Vengeance
    Just in the past few days …
    Moody’s raised serious doubts about the U.S. government’s credit rating.
    The manager of the world’s largest bond fund predicted that America’s credit rating could be slashed.
    Treasury secretary Geithner warned of the dangers of record-shattering government borrowing.
    And even the Fed, despite all its buying power, was overwhelmed by the avalanche of Treasury bonds being dumped on the market.
    Result: Bond prices crashed. Interest rates surged.
    A Unique Convergence of Events
    If all of these events can tell you anything, it’s that you now have the kind of opportunity that generations of investors could only dream about.
    You have the ability to read the handwriting on the wall; to know in advance what is most likely to happen next.
    Treasuries bond prices are already sinking. Long-term interest rates are already rising. Just since December alone, the yield on the 10-year Treasury has soared 50 percent (1.5 times its prior level).
    This is the recipe for disaster I’ve been warning you about:

    Even before the interest rate rise, mortgages and consumer loans were already scarce.
    Even before the rate rise, the official, greatly understated unemployment rate was already at 8.9 percent, on its way to 10 percent.
    Even before higher rates, consumers were scared — delaying or cancelling major purchases.
    Now, rising interest rates are about to kill what little consumer demand is left in the U.S. economy — a perfect storm for corporate earnings and the U.S. stock market.


May 25, 2009 Posted by | Economics | , , , , , | Comments Off on US Treasury Bond Market Collapsing Now!

Peter Schiff: Dollar in Trouble !

  • Peter Schiff debates the demise of the USD on The Call, CNBC. The USD is hitting new lows for 2009. The US Dollar Index will test the 78 level soon and go back to the 2008 low of 72. It is oversold at the moment, so it will take a slight breather before the downtrend resumes.


May 25, 2009 Posted by | Economics | , , , , | Comments Off on Peter Schiff: Dollar in Trouble !

Max Keiser: Green Shoots or Dying Roots? America is Becoming Banana Republic !

  • Max Keiser discusses whether the economy is seeing ‘green shoots’ or propaganda. The economy is going to get much worse. The financial oligarchy ruling America is looting the country on an unprecedented scale. US$350B of the original bailout money is unaccounted for. There seems to be evidence of market manipulation for the past 7-8 weeks as highlighted by Dan Schaffer in the video. Someone is manipulating the market higher at close to the end of trading day on a few occasions. Max interviews Marc Faber in the final segment. They discuss the USD and gold.


May 25, 2009 Posted by | Economics | , , | Comments Off on Max Keiser: Green Shoots or Dying Roots? America is Becoming Banana Republic !