Ipso – that bond chart doesn’t look very friendly does it? The only hope there is that the strangling debt forces Bessent to pull the trigger on a gold revaluation. They are not going to be able to make the debt payments for too much longer if this continues.
deer79 – thanks for the explanation. I know throughout history governments have always tried to devalue their way out of debt, so maybe that’s coming. The funny thing about the rise in the dollar is that it’s not making goods more affordable, like oil. The opposite of what it should be doing. Our import prices should be falling in a big way, auto’s, appliances, etc. but we’re not seeing it. It should be a lot cheaper to travel abroad, but I don’t think it is.
Interesting that the metals are sort of ignoring a half percent move up in the dollar today. Be nice if that were a sign of things to come.