Most Popular
1. It’s a New Macro, the Gold Market Knows It, But Dead Men Walking Do Not (yet)- Gary_Tanashian
2.Stock Market Presidential Election Cycle Seasonal Trend Analysis - Nadeem_Walayat
3. Bitcoin S&P Pattern - Nadeem_Walayat
4.Nvidia Blow Off Top - Flying High like the Phoenix too Close to the Sun - Nadeem_Walayat
4.U.S. financial market’s “Weimar phase” impact to your fiat and digital assets - Raymond_Matison
5. How to Profit from the Global Warming ClImate Change Mega Death Trend - Part1 - Nadeem_Walayat
7.Bitcoin Gravy Train Trend Forecast 2024 - - Nadeem_Walayat
8.The Bond Trade and Interest Rates - Nadeem_Walayat
9.It’s Easy to Scream Stocks Bubble! - Stephen_McBride
10.Fed’s Next Intertest Rate Move might not align with popular consensus - Richard_Mills
Last 7 days
Trump Stocks and Crypto Mania 2025 Incoming as Bitcoin Breaks Above $100k - 8th Dec 24
Gold Price Multiple Confirmations - Are You Ready? - 8th Dec 24
Gold Price Monster Upleg Lives - 8th Dec 24
Stock & Crypto Markets Going into December 2024 - 2nd Dec 24
US Presidential Election Year Stock Market Seasonal Trend - 29th Nov 24
Who controls the past controls the future: who controls the present controls the past - 29th Nov 24
Gold After Trump Wins - 29th Nov 24
The AI Stocks, Housing, Inflation and Bitcoin Crypto Mega-trends - 27th Nov 24
Gold Price Ahead of the Thanksgiving Weekend - 27th Nov 24
Bitcoin Gravy Train Trend Forecast to June 2025 - 24th Nov 24
Stocks, Bitcoin and Crypto Markets Breaking Bad on Donald Trump Pump - 21st Nov 24
Gold Price To Re-Test $2,700 - 21st Nov 24
Stock Market Sentiment Speaks: This Is My Strong Warning To You - 21st Nov 24
Financial Crisis 2025 - This is Going to Shock People! - 21st Nov 24
Dubai Deluge - AI Tech Stocks Earnings Correction Opportunities - 18th Nov 24
Why President Trump Has NO Real Power - Deep State Military Industrial Complex - 8th Nov 24
Social Grant Increases and Serge Belamant Amid South Africa's New Political Landscape - 8th Nov 24
Is Forex Worth It? - 8th Nov 24
Nvidia Numero Uno in Count Down to President Donald Pump Election Victory - 5th Nov 24
Trump or Harris - Who Wins US Presidential Election 2024 Forecast Prediction - 5th Nov 24
Stock Market Brief in Count Down to US Election Result 2024 - 3rd Nov 24
Gold Stocks’ Winter Rally 2024 - 3rd Nov 24
Why Countdown to U.S. Recession is Underway - 3rd Nov 24
Stock Market Trend Forecast to Jan 2025 - 2nd Nov 24
President Donald PUMP Forecast to Win US Presidential Election 2024 - 1st Nov 24

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

US Bonds Collapsing! Foreigners Abandoning the US Dollar!

Interest-Rates / US Dollar Sep 24, 2007 - 02:07 AM GMT

By: Money_and_Markets

Interest-Rates

Martin Weiss writes: If you thought the dollar's collapse would not affect you, think again! Here's what's happening:

First, U.S. bond prices are collapsing: In the two days after the Fed's rate cut, the price of the long-term Treasury bond plunged more than two and a half points, including the worst single-day plunge since September of 2003. This means bond yields, which move in the opposite direction, have surged.


Second, if this trend continues, 30-year fixed-rate mortgage rates, which follow long-term Treasury yields, will also surge — precisely the opposite of what the Fed had hoped.

Third, all this could lead to higher mortgage rates across the board — both on the higher risk subprime mortgages and on the supposedly lower risk "prime" mortgages.

According to textbook theory, this wasn't supposed to happen! But it is happening. Why are Treasury yields surging (and their prices plunging) even while the Fed is cutting its interest rates?

Simple: It's primarily because of the key factor we've been hammering away at day after day, week after week: The U.S. dollar! It's …

  • Because foreign investors hold over $7 trillion in U.S. dollars, mostly in U.S. Treasuries …
  • Because they're taking a beating in dollars and starting to dump them …
  • And because when they dump their dollars, they have to dump their U.S. bonds along with them. Heck, even before the Fed's latest action, demand for U.S. bonds was down a staggering 80% in just one month, with the biggest selling coming from overseas.

Now, the U.S. Dollar Index has fallen well below critical support levels to within a fraction of a point of its lowest level in history and signaling even more dramatic declines ahead — just like we told you it would!

Now, gold has spiked to over $735 per ounce … oil has surged … food, water, industrial metals, construction materials and just about every other natural resource you can name is soaring in price.

None of this should come as a surprise to you — because frankly, we told you this was coming.

We even held a free Emergency Video Summit this week — The Great Dollar Panic of 2007-2008 — to help you protect yourself and profit.

And if you missed it — or need to watch it again — we've invited you to do so — free — just by clicking here .

But time is running out. Things are just happening too fast and I cannot keep this urgent and extremely timely information available past tomorrow at midnight. If you don't watch it before then, you will miss it!

In it, my team and I help you save a king's ransom as the Fed continues to gut the value of our money — and we reveal how you can use this crisis to multiply your wealth with a new investment vehicle designed to deliver substantial profits at times like these.

Whatever you do, do not invest another dollar until you get this crucial information! Just turn your speakers on and click here .

Good luck and God bless!

Martin

This investment news is brought to you by Money and Markets . Money and Markets is a free daily investment newsletter from Martin D. Weiss and Weiss Research analysts offering the latest investing news and financial insights for the stock market, including tips and advice on investing in gold, energy and oil. Dr. Weiss is a leader in the fields of investing, interest rates, financial safety and economic forecasting. To view archives or subscribe, visit http://www.moneyandmarkets.com .

Money and Markets Archive

© 2005-2022 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in