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Thursday, September 25, 2008

Financial markets collapse is peanuts compared to US Bond Collapse

As I have blogged, many countries are viewing our printing spree as cause to distance themselves with American Debt. Providing the US government does pass the bailout, the next crisis may be the US Dollar collapsing.

There is now new reports (not just bloggers or tinfoil hat wearing people) that Asia is discussing how to staff a panic run of selling US Debt. Germany and England, Russia, China, and Japan are separating from America's debt. China today issued commands to not buy US debt. I believe China's move stems from smelling blood in the water, and they are trying to get political agenda deals while the lame duck, poor decision making president is in office. Asia does have its own bank problems, including an old-fashion bank run on Bank of East Asia.

The absolute worse scenario is passing the bailout bill and US Debt no longer purchased world wide. The US is a debtor nation, if this was to occur, best place to be will be shorting bond values or being in natural resources. (Gold, Oil, etc) Federal Bonds is still safest place, but not for years, for next 6+ months. If USA inflates, be prepared to flip out of bonds.

Update: BB&T company executive has written a letter to congress against the bailout.

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