Preps and Solutions
(Sponsored Ads)
Silver
Strategic Relocation
Recently Posted Articles and Videos
Ready Nutrition - Homesteading and Preparedness
Ready Gardens - A Ready Nutrition Company
The Daily Sheeple
The Prepper Website
SGT Report
SGT Report
top Prepper Web Sites
Featured Destinations
The Liberty Mill
Web Destinations

Clarocet for Kids
Silver

Peter Schiff: Once the psychology turns, there is no way to stop the rush for the exits

Mac Slavo
June 8th, 2009
SHTFplan.com
Comment (1)
Read by 57 people

Peter Schiff writes With Oversized Deficits Almost Certain to Persist, an Investment In America’s Future is One Very Tough Sell.

Once the psychology turns, there is no way to stop the rush for the exits. Remember how quickly the secondary market for subprime mortgages collapsed? One day, investors were lining up to buy; the next day, the stuff couldn’t be given away.

Make no mistake about it, we are issuing subprime paper and no amount of political spin can alter that reality. Bogus credit ratings aside, I think the world already knows this and it’s just a matter of time before someone admits it.

My Comments: It is only a matter of time before a crisis of confidence hits the US Dollar and US Treasury bonds. While we have seen interest rates on 10 and 30 year bonds rise in recent weeks, and declines in the dollar over the last couple of weeks, we are not there just yet. The Chinese are still buying our bonds, and the fact that most major international transactions are settled in US dollars means that when the next bout of panic selling occurs, deleveraging may result in similar effects as what we saw in 2008, with a complete collapse of just about every asset class in terms of dollars, while the dollar strengthened versus other currencies around the globe. This same scenario may unfold in late 2009 and early 2010 as the economic realities hit investors and selling begins again.

The difference this time will be that once deleveraging is completed, foreigners will run for the hills, as they will no longer believe the B.S. and the hype being thrown at them by the US mainstream media, the Fed, Treasury and Obama administration. This will be a crisis of confidence leading to a severe collapse of the US Dollar and massive interest rate increases on long-term bonds, wiping out bond holders in the process.

Read Peter Schiff’s full article here

Click here to subscribe: Join over one million monthly readers and receive breaking news, strategies, ideas and commentary.
Gas Masks, Filters, Body Suits, Anti Radiation Pills
Please Spread The Word And Share This Post

Author: Mac Slavo
Views: Read by 57 people
Date: June 8th, 2009
Website: www.SHTFplan.com

Copyright Information: Copyright SHTFplan and Mac Slavo. This content may be freely reproduced in full or in part in digital form with full attribution to the author and a link to www.shtfplan.com. Please contact us for permission to reproduce this content in other media formats.

One Comment...

Vote: Click here to vote for SHTF Plan as a Top Prepper Web Site
 

Web Design and Content Copyright 2007 - 2015 SHTF Plan - When It Hits The Fan, Don't Say We Didn't Warn You - All Rights Reserved

Our Supercharged Intel Xeon E5-2620 v4 Octo-Core Dual Servers are Powered By Liquid Web

Dedicated IP Address: 69.167.174.108

The content on this site is provided as general information only. The ideas expressed on this site are solely the opinions of the author(s) and do not necessarily represent the opinions of sponsors or firms affiliated with the author(s). The author may or may not have a financial interest in any company or advertiser referenced. Any action taken as a result of information, analysis, or advertisement on this site is ultimately the responsibility of the reader.

SHTFplan is a participant in the Amazon Services LLC Associates Program, an affiliate advertising program designed to provide a means for sites to earn advertising fees by advertising and linking to Amazon.com.