This is all BEFORE THINGS START REALLY CRASHING.

We’re plunging into the abyss with at least 12 states about to go bankrupt

The federal deficit at an expected record $2.2 trillion

Savers still getting near zero percent returns, credit contracting

Foreclosures running at a record rate of 4 million a year, and banks facing aggregate losses from bad commercial and residential real estate and other borrowings in the trillions,

Corporate bond default rate of over 12%

Expecting to see a strong dollar

Because of the massive deleveraging and destruction of dollars and the fact that this increased risk will raise interests rates via yields in the bond markets, not to mention the fact that Europe and Japan are in even worse shape and the dollar on the DX is weighted against the Euro most heavily. Moreover, falling prices which will be caused by all oft this are deflationary which makes the dollar worth more.

So far, rates have remained stubbornly low. The Treasury is now trying to move its borrowing “out the curve,” however–borrowing money for longer periods to lessen the risk of a short rate increase–and yesterday’s Treasury auction didn’t go well: Specifically, lenders demanded higher than expected interest rates for their money

http://www.businessinsider.com/henry-blodget-its-getting-more-expensive-for-the-us-to-borrow-all-those-billions-2009-12

- AmericanPatriot

Related Posts:

• The economy is collapsing in the US and globally deeper into malaise everywhere.
• Re. jobs report.
• Worth a read: Why the Stock Market Should Crash?
• 2010 Will Look Four Times Worse Than 2009, AT LEAST!!
• Tonight on Asian news they were calling for a correction in gold to reach $870 before taking off to $1,200 later this year or next.

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