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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory

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To: Carlos Blanco who wrote (22878)12/5/2004 7:20:47 PM
From: orkrious  Read Replies (1) of 110194
 
he lays out my view of the current and future interest rate situation much better than what i ever could...

yes, and where he says

The conclusion in quite simple and to the point - unless the bond market wakes up out of its drunken stupor and moves to increase rates on the long end of the curve soon, the dollar is going to continue its descent unchecked and as it goes, it is going to create a situation in which the once unthinkable is going to happen - foreign central banks are going to begin disinvestment of U.S. Treasuries which will create a vicious feedback loop in which selling will beget more selling as there is a rush to exit before the next guy does.

maybe the long rates aren't rising because the fed is monetizing on the long end. if so, it would explain the dollar's relentless decline.
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