Some analysts have steadfastly maintained that Greenie is not bigger than the currency markets. I steadfastly agree.
Dollar is falling and will stabilize when rates rise to compensate accordingly, and/or when US starts to clean up its mess. If they try to hold dollar up, higher rates become a necessity for holders to hold. So either way it appears they are somewhat boxed in.
If rates blast through 46 (4.6) on TNX, chart indicates they will likely go much higher. Gen market will not appreciate. Gold should.
Imo the US debt and interest rate issues are kind of like a derivative time bomb, that could really explode (or implode). There is a lot shit I suspect that has went on behind the scenes, relative to rate swaps, involving large sums of money. Everyone happy when they pay the ST rate, as opposed to the LT rate. What happens when ST rates suddenly rise?
nspolar became part of that in essence when he did a swap on his home loan, and now holds a 5 yr variable rate (I'm okay for 5 yrs). nspolar OTOH is debt free, so he doesn't care so much. What about the rest? What happens to the rest when it goes the other way, AND when (not if) real estate prices fall? Many will hold mortgages that are more than what their house is worth. Many should have went for lower LT rates, but I suspect many did not.
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