by Larry Edelson
Interest rates on U.S. Treasury securities have now plunged to their lowest levels in our country’s history.
What does that tell you? That our economy is slowing? Sure, but rates aren’t at 236-year lows just because the U.S. economy is slowing. The message it’s giving is far more serious than that.
Interest rates on U.S. Treasury securities are at 236-year lows because tens of millions of investors all over the world are panicking. Largely because of Europe’s collapsing economy and financial system.
So they’re piling into U.S. Treasury securities like there’s no tomorrow, bidding up the price of those securities, and pushing interest rates to historic lows.
Along the way, they’re stampeding OUT of just about everything else considered risky. They’re dumping European stocks. They’re dumping commodities. They’re even dumping precious metals.
They’re scared silly, and rightfully so. Europe is going down the drain.
At the same time, the world’s central banks are largely sitting on the sidelines. They have not yet come out swinging; they have NOT cranked up the money printing presses ...
And that’s adding fuel to the fire, causing even more panic!
Thing is, it’s likely to get even worse. The central banks will not come out swinging so easily this time around.
What does that tell you? That our economy is slowing? Sure, but rates aren’t at 236-year lows just because the U.S. economy is slowing. The message it’s giving is far more serious than that.
Interest rates on U.S. Treasury securities are at 236-year lows because tens of millions of investors all over the world are panicking. Largely because of Europe’s collapsing economy and financial system.
So they’re piling into U.S. Treasury securities like there’s no tomorrow, bidding up the price of those securities, and pushing interest rates to historic lows.
Along the way, they’re stampeding OUT of just about everything else considered risky. They’re dumping European stocks. They’re dumping commodities. They’re even dumping precious metals.
They’re scared silly, and rightfully so. Europe is going down the drain.
At the same time, the world’s central banks are largely sitting on the sidelines. They have not yet come out swinging; they have NOT cranked up the money printing presses ...
And that’s adding fuel to the fire, causing even more panic!
Thing is, it’s likely to get even worse. The central banks will not come out swinging so easily this time around.
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