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Strategies & Market Trends : The coming US dollar crisis -- Ignore unavailable to you. Want to Upgrade?


To: Broken_Clock who wrote (68256)10/13/2022 1:45:08 PM
From: Real Man  Respond to of 71454
 
They will buy it because there is no immediate risk of default, and the rates are much higher than the rest of G7, but the debt is beyond the point of no return, so it will keep growing faster than the gdp. Current Fed policy will accelerate the rise of government debt. We had a bad budget deficit while not in a recession. This will lead to big problems “ down the road”, the place we keep kicking the ball to.

One potential problem is that higher rates = bond selloff, bond bear leads to losses, losses get dumped. I
am sitting pretty only pocketing coupons, I am not subjected to bond price decline, but some folks are. Defensive portfolios,60-40 portfolios all tanking hard.

stockcharts.com



To: Broken_Clock who wrote (68256)10/13/2022 2:25:47 PM
From: Real Man  Respond to of 71454