With US budget deficit close to USD 1 trillion, it is a matter of time before the world loses confidence and no longer wants to buy US Treasury bonds and notes.
If demand for US Treasury bond drops, it will invariably lead to an edging up of US long-term interest rates. And then US mortgage rates will rise too.
If the rating agencies start to downgrade them, we may face another crisis in the fixed income market that will spillover to the equity markets.
In other words, the Americans are screwed.
I am not too bullish on countries that do lots of trade with the US. But I am bullish China. Go long China, go short USA.
Europe is undergoing their own austerity measures and cutting spending. At least there is hope for Europe 10 years down the road.
US is screwed, big time. Another crisis in the making. Akan datang.
If demand for US Treasury bond drops, it will invariably lead to an edging up of US long-term interest rates. And then US mortgage rates will rise too.
If the rating agencies start to downgrade them, we may face another crisis in the fixed income market that will spillover to the equity markets.
In other words, the Americans are screwed.
I am not too bullish on countries that do lots of trade with the US. But I am bullish China. Go long China, go short USA.
Europe is undergoing their own austerity measures and cutting spending. At least there is hope for Europe 10 years down the road.
US is screwed, big time. Another crisis in the making. Akan datang.