Gold Scramble Driving Interest Rate Spike as Treasury-values Fall Steeply, Reflecting Asia Abandonment of US Dollar

Scary stuff. Interest rates go up too much, and its game over.

First countries stopped using dollars for trade amongst themselves, then there were talks of gold-backed Yuan, then world economic data started to crumble, then countries wanted to repatriate gold from western central banks, now interest rates starting to rise. Not good at all.

it's not just asia, the arab countries (israel included they are arabs after all) europeans, latins, so forth and so on are moving into the renminbi.

Haven't you been reading the financials?

The Ne-gross get mo' mony!

There's a mad scramble right now among global governments to have and hold their own gold.

REASON: NOBODY TRUSTS THE DOLLAR WHEN IT DOESN'T PAY JACK-SHIT IN INTEREST.

What happens if more (i.e. the Swiss as latest) pile on? the Fed will be forced to raise interest rates.

THIS WILL UTTERLY DEVASTATE GLOBAL BOND MARKETS, WHO HAVE BEEN ISSUING ALL THIS LOW-INTEREST PAPER FOR 4 YEARS NOW!

Get out of all your bond funds, ASAP! especially if they're shitty junk bond funds, even if you have an income situation, because you will suffer amazing losses of principal!

Not to mention loss of Principal, watch what happens in the US. Consumer prices will skyrocket. Once the Government cannot service the debt then benefits will be cut. The first to go will be welfare and food stamps. Then social unrest will ensue. Speculation has been that they (read FED) can keep kicking the can down the road for a couple of years before things blow up. However, if this turns volatile, look out. Another fear would be a major terrorist event similar to 9/11 only much greater in scale. There has been speculation that such an event would permit Government default on the debt by "Force Majeure".

[link to en.wikipedia.org (secure)]

No one really knows what will happen but, it is a good idea to be prepared.

Not to mention loss of Principal, watch what happens in the US. Consumer prices will skyrocket. Once the Government cannot service the debt then benefits will be cut. The first to go will be welfare and food stamps. Then social unrest will ensue. Speculation has been that they (read FED) can keep kicking the can down the road for a couple of years before things blow up. However, if this turns volatile, look out. Another fear would be a major terrorist event similar to 9/11 only much greater in scale. There has been speculation that such an event would permit Government default on the debt by "Force Majeure".

[link to en.wikipedia.org (secure)]

No one really knows what will happen but, it is a good idea to be prepared.


That may happen, but the most likely scenario is that the gold scramble will force the Fed & other central banks to raise i-rates, which will dramatically de-value bonds. They will justify it by saying, "well you're still getting the bond payments, aren't you?" [i.e. shut up and drink your Gin]

One more thing OP. I just gave you 5 stars and a pin request. People here on GLP and elsewhere are for the most part ignoring this subject. It is truly one of the things to be most concerned about. The entire American economy is operated on revolving debt. When the debt cannot be rolled over or refinanced, game over.

Did you see this thread? Think they're related.

Thread: Is This The Big One? China Finally Admitting They Are Launching A Gold Backed Currency For World Trade?!?!?