Hello Malcolm, <<... thereby soak up dollars which would have otherwise been reinvested in US bonds. As a result US interest rates are forced to rise ...>>
... the T-bill buying, in this case, may simply be inherited by the oil exporters (Russia, Venezuela, ME tribes) from Japan, China, Taiwan, etc.
The global fiat currency USD is the lifeblood of this era, being progressively poisoned by debt, leverage, speculation, and the financial/economic world will not readily meet its demise because of the slow poisoning, but when it goes, it may all go, in one swoop.
In the meantime, we do a delicate and choreographed dance through the mine fields that is the financial market, until the boom.
Picture it, millions of speculators, all dancing in a mine field, last person standing style :0)
The best part of the party is that Maestro Greensputin speeds up and slows down the music, raises and lowers the alcohol content of the punch, locks and unlocks the doors to the washroom, and makes a speech over the speaker systems, and we are supposed pay attention even as we ogle at our respective dates, and each other's dates, with hunger and abhorrence, in a case by case basis, and sometimes trading dates, via the date brokers, at commissions, always, perhaps based on analysts reports on attraction of dates, the one night stands vs the LTBHs.
Chugs, Jay |
