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Interest rates are going up

 
 
Reply Tue 16 Nov, 2010 12:24 am
The feds are trying to lower interest rates by buying back $600 billion in bonds, but the market is doing just the opposite.

I find it humorous that the feds seem to do the opposite of what their intention is, and makes our economy suffer more.

When the feds increases liquidity in the market with more US currency, that is inflationary on top of our huge national debt and trade deficit.

They seem to accomplish everything ass-backwards.

The world is already flooded with US dollars; this is China's opportunity to sell some of their bond holdings back to the US, because the US monopoly money is not going to hold value too much longer - even in this economy. That's the reason why Greece and Ireland are in big trouble; too much debt, and nobody has any faith in their bonds.

The only reason I'm hanging onto our bonds is simply that inflation in the future is a given; it's only a matter of time when the world marketplace is going to treat US currency the same way they are treating Greece and Ireland.

It's going to take more dollars to buy everything.

What say you?
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