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Strategies & Market Trends : Ride the Tiger with CD

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From: SwampDogg12/5/2012 11:07:38 PM
17 Recommendations  Read Replies (1) of 312380
 
So let me get his right
GS call that the top of the gold market is in 'cause
US growth will lead to higher real rates like it did in the 1980s when Fed raised rates to 20%.
Chart shows real interest rates rising to over 10% that popped the last gold bubble.

Anybody care to ask what happens to US debt interest if rates go to those levels. Annual interest on the debt would be higher than all tax revenues (over $2 trillion) . Not to mention the fact that the bond market would be nuked and the system would implode.
Market gets that GS is full of it but let's at least get out an abacus.
How many times have we gone through this jawbone farce. Fed has a balance sheet worse than Lehman and they can only keep buying or else the house of cards falls. Pretty simple really.

businessinsider.com
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