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Imminent US bubble burst? Your thoughts on this article?

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I was sent this email from wealth daily a us stock company- they say they predicted the first bubble burst also. I just could not add the graphs though.

Interested to see what people think!

This next bubble isn't just going to pop... it's going to explode.

Take a look at the charts below - do you notice a pattern here?

Comparing the Bubbles



It's as plain as the nose on your face.

There's an enormous bubble in the U.S. right now... and it's on the verge of bursting at any minute.

When it does - I'm sorry to say - millions of investors who thought their money was safe are going to suffer.

But at the same time, one group of investors - led by Ian Cooper, will not only avoid this catastrophe... they'll be raking in triple-digit profits along the way.

You see, Ian - the man who called the sub-prime collapse back in February 2007 - has just issued his latest - and MOST URGENT - warning:

"The U.S. Treasury bubble--very soon--is going to burst wide open."


Here's how it's going down:

As you know, Ben Bernanke, Henry Paulson and the boys at the Fed and Treasury are flooding the financial system with cash. They're slashing interest rates... and they're bailing out seemingly every big corporation that raises a hand.

It's almost as if Bernanke and Paulson are openly begging for inflation.

Take a look at another chart - this time showing what has happened to the U.S. Money Supply over the last two years...


The chart makes one fact very clear: The value of the U.S. dollar is about to take a very serious beating.

But hold on - we're just getting started.

This U.S. money supply chart includes only the very beginning of the more than $7.2 trillion worth of federal bailout money our government has committed to.

And it includes none of the proposed $775 billion stimulus package being pushed by President Barack Obama.

The simple fact is: The U.S. Government - at this very moment - is teetering on the brink of bankruptcy. And with each new federal bailout, we move one step closer to the potential downgrading of the U.S. credit rating!



The U.S. Treasury Bubble Is Not Only Real...
It's on the Verge of Collapsing at Any Time!

In the past few months, investors have raced away from stocks, corporate bonds and commodities... and while scrambling for safety they've created an enormous bubble in U.S. Treasuries.

So much so, they drove the 3-month Treasury bill rate to negative territory for the first time since 1929, creating an over-inflated bubble set for failure.

And for once, it seems, the major media outlets seem to agree...

√ On December 15, the Wall Street Journal proclaimed: "In the wake of popped stock, housing and commodity bubbles, some see a fourth bubble building - in Treasury bonds."
√ On December 12, a Dallas Morning News headline confirmed that "Treasury bonds have reached bubble stage."
√ On December 26, no less an authority than Bill Gross - a man the New York Times calls The Nation's Most Prominent Bond Investor - said that, "Treasuries have some bubble characteristics, certainly the Treasury bill does."


To be sure, here's how crazy the activity's been in the Treasury market:

On the very same day - December 9, 2008 - in which the rates on 3-month Treasury bills turned negative for the first time... the U.S. still sold $30 billion worth of 4-week T-bills at a zero percent rate.

Listen - you and I both know... that money is not going to stay parked in U.S. Treasuries forever.

At some point - most likely within the next few weeks - that money will begin pulling out of Treasuries... and back into equities.

And when that begins to happen...


POP!

Amazingly... millions of U.S. investors either don't see the coming danger - or they simply choose to ignore it.

But when this bubble bursts - and it's only a matter of time until it does - those very same investors who thought they were investing in a safe, secure investment vehicle are going to be wiped out.

So here's what's most important to you right now:

It's absolutely critical that you prepare yourself today for the imminent explosion of the U.S. Treasury Bubble.
 
What do I know? But I would think the US Govt. is so all over this right now that it won't be allowed to happen. The sub-prime crisis caused and is causing pain because no-one was looking. They are looking now - boy are they looking.

It also reads a bit too much like advertising. But hey! What do I know? 0.
 
I just have this terrible feeling that all this flight of capital to USD is like the rats and mice following the Pied Piper. And the end is inevitable and predictable. Even though "they" are "looking" I suspect that "they" are "looking" at a tragedy unfold of Shakespearian proportions. Ponzi capitalism is dead, or at least wriggling in its death throes. Even though I hold USDs, I am moving them to AUDs but even that may do me no good. They are all fiat systems and being run on excessive credit allowance. Michael Lewis (Liar's Poker) is probably correct in his analysis of Wall St, and Wall St is going to take us all down. And Wall St's mates Greenspan and Bernanke are just compounding the problem.

Yes, you are probably correct that the bubble is about to burst. Only problem is that the bubble is full of, as Michael Lewis would say "layer upon layer of dog sh*t", and we're all going to get covered in dog sh%t. Long live the Austrians and Von Misces.

What to do????? Buy gold??????? Buy a gold lease???? Buy a mine, any old mine, and work hard???? :confused: :confused:
 
I know nothing as well, but having worked in the public service, I know to never underestimate Government stupidity.

I have read similar on http://www.marketskeptics.com and it is quite concerning. I'd be interested if anyone out there would like to suggest what the implications to Australia would be.

If hyper-(or extreme)inflation were to occur, Gold is based in US$ - does that mean Gold equities may be safer?

They say, if you are employed with debt it is good as it can lower your debt. Well does that mean that going into debt now may be a good idea??

What would be a safe(r) investment for fixed income/pensioners?
 
I'm only theorizing here but i'd say the outcomes of a USD collapse for Australia would be very bad.
The US would no longer be able to trade with us as it does currently which would mean our income as a country would be less and our ability to service foreign debt would become harder. The current account deficit may come back to bite.

Going into debt doesn't sound that smart to me but then i may be wrong.
 
If hyper-(or extreme)inflation were to occur, Gold is based in US$ - does that mean Gold equities may be safer?

What the truck? The USD has not been pegged to the gold price since the days of Tricky Dicky - hence the unwinding of the asset bubble mania you and I are enjoying at the moment.

If you want gold, buy physical gold. However equities will give you exposure to the gold price but with an element of equity markets risk and, importantly for gold, treasury risk (hedge books, forward contracts and the like). Anyway there are countless threads on gold with some savvy contributors. Have a look in 'Commodities'.

PS: there is a thread on this topic in International section that will provide some further details for you guys. I am not sure, however, to post a link?
 
I'm only theorizing here but i'd say the outcomes of a USD collapse for Australia would be very bad.
The US would no longer be able to trade with us as it does currently which would mean our income as a country would be less and our ability to service foreign debt would become harder. The current account deficit may come back to bite.

Going into debt doesn't sound that smart to me but then i may be wrong.

A flight away from treasuries will have a massive effect on the POG (already being would up like a rubber band), and that can only be positive for the AUD.

:2twocents

CanOz
 
A flight away from treasuries will have a massive effect on the POG (already being would up like a rubber band), and that can only be positive for the AUD.

:2twocents

CanOz

But, if everyone then wants our BananaBuck$, it will go through the roof and then our exports will crash?

DOH!

It's all too complicated... :confused:
 
exports will crash?

Exports of mineral resources have already crashed haven't they?

China is slowing quickly as is the rest of Asia, requiring fewer materials now.

Who knows, maybe if all this unravels we'll really see the Amero after all!:D

CanOz
 
Exports of mineral resources have already crashed haven't they?

China is slowing quickly as is the rest of Asia, requiring fewer materials now.

Who knows, maybe if all this unravels we'll really see the Amero after all!:D

CanOz

YenYuans?

Or, to save face, should that be YuanYens? :)
 
What the truck? The USD has not been pegged to the gold price since the days of Tricky Dicky

I didn't really mean that. I meant about that the gold price we pay, isn't it in US dollars? So if the AU -> US dollar rate changes, doesn't that have a real-effect on the price of gold from our perspective, regardless of the global price of gold.

For instance, gold has been good for people in Aus recently simply because if they purchased at US parity, now they have 1/3 more because of the exchange difference only. Surely, it can go both ways.
 
I didn't really mean that. I meant about that the gold price we pay, isn't it in US dollars? So if the AU -> US dollar rate changes, doesn't that have a real-effect on the price of gold from our perspective, regardless of the global price of gold.

For instance, gold has been good for people in Aus recently simply because if they purchased at US parity, now they have 1/3 more because of the exchange difference only. Surely, it can go both ways.

Yes, that is correct but I think the line or argument goes something like....... if the US economy goes banana shape then the price of gold (in USD terms) will go through the roof. So whilst you may have purchased your gold in AUD at say 0.65, the impact of the price increase in gold will outweigh changes in the exchange rate. I guess though there becomes a point, if say the USD went like the Zimbabwe zong (or whatever it's called), then all bets are off. I'm not sure what happens should that occur. Uncharted territory. But one would think that should fiat currencies tank (especially the USD), then gold would re-establish itself with some sort of intrinsic value. :confused:
 
Gold price is being manipulated. Dec had an increase of over 120% for demand in physical gold yet the market price stayed flat. So much for supply and demand.

China and USA is doing everything it can to prop up the US dollar. They can only manipulate it for so long til it implodes
 
A timely thread all

The following appeared in the Privateer newsletter early in December 08:-

A notable feature of the two weeks just ended has been a fantastic explosion in the secondary market for US Treasury debt paper. Up until November 19, the T-Bond futures price had not yet gone above 124.30 - the level it reached the last time that the Fed Funds was 1.00 percent in the twelve months between mid 2003 and 2004. On December 5, the price had soared to 134.40. A price rise of this magnitude and swiftness is almost certainly unprecedented. The "flight to safety" has reached blow-off proportions, with yields at the short end of the curve having reached the ultimate 0.01 percent.

The T-Bonds have since dropped back a bit but as well as the US$ index is an indicator to keep watch.

cheers explod
 
Not of a case of if but when.

http://www.theaustralian.com.au/business/news/us-must-raise-debt-ceiling-says-obamas-top-economic-adviser/story-e6frg90o-1225980850732

The current federal government borrowing limit stands at $US14.3 trillion ($14.02 trillion), a mark that is expected to be reached by April or May.

Before hitting the limit, Congress must vote to increase the nation's borrowing capacity. Otherwise, the US could be forced to default on its debt obligations and the government could be shut down.

Just keeping adding to the debt, remove the ceiling all together, no need for it, just keep on borrowing.

Obama is out of control.

Cheers
 
Not of a case of if but when.

One thing I've learnt from the last GFC, is that "they" can (and will) prop things up for a helluva lot longer then "we" think they can.

I'm certain of a "when", but it could be a long time coming.
 
I've heard Obama might have other radical agendas, to appease the minority progressive special interest groups he's aligned with, by getting the excuse for 'big' government to act in it's own self interest & instigate pos. sweeping changes.

Top-down bottom-up inside & out. radical reform?

How much US currency is held as reserves by other nations?
And what would happen if the US dollar 'tanked'?.....A lot of worthless paper.

I think it's a dangerous game they're play'n, printing more money!

Soon, all they might have [apart from a commy gov.] is just a few Nuclear subs & 'the bomb'?

As a side note: I wouldn't want to be living in some of their cities, full of angry desparate people....Armed to the teeth.


Vicki:)
 
World on high alert as China inflation soars
January 3, 2011

Ominously, outrage is growing in the People's Republic over rising prices, writes Malcolm Moore.

CHINA could be hit by inflation of 7-8 per cent in the next two months, panicking Beijing's policymakers into dramatically raising interest rates, economists have warned.

The prospect of at least four further interest rate rises in the world's second-largest economy is likely to alarm global markets, which tumbled in shock at China's decision to raise rates on Christmas Day.

Source - http://www.theage.com.au/business/world-on-high-alert-as-china-inflation-soars-20110102-19d0l.html

This is very concerning as well
 
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