{"id":56454,"date":"2021-01-18T08:16:26","date_gmt":"2021-01-18T13:16:26","guid":{"rendered":"https:\/\/olduvai.ca\/?p=56454"},"modified":"2021-01-18T08:16:26","modified_gmt":"2021-01-18T13:16:26","slug":"interest-rate-tremors-may-spell-disaster-for-the-dollar","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=56454","title":{"rendered":"Interest Rate Tremors May Spell Disaster for the Dollar"},"content":{"rendered":"
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Interest Rate Tremors May Spell Disaster for the Dollar<\/a><\/h3>\n<\/div>\n<\/div>\n<\/section>\n
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\"Interest<\/p>\n
Banksy<\/span><\/div>\n<\/div>\n

As the U.S. plunges further into debt beyond a\u00a0staggering $27 trillion<\/a>,\u00a0<\/u>the dollar\u2019s time is running out. But the problem is much deeper than that.<\/p>\n

With inflation on the\u00a0rise<\/a>, and long-term bond yields\u00a0rising<\/a>\u00a0in concert with massive debt, some disturbing scenarios could develop that spell trouble for the dollar.<\/p>\n

The most disturbing possibility on the horizon could develop in the huge bond market (about $500 trillion in size). According to the January 14 issue of\u00a0One Last Thing<\/em>\u00a0by Three Founders Publishing, if it were to collapse, the result would be catastrophic:<\/p>\n

\u201cIf Treasuries begin to collapse, forcing yields through the roof, it will result in crashes in stocks, real estate, corporate bonds, and municipal bonds\u00a0all at the same time.\u201d<\/strong><\/em><\/p>\n

So let\u2019s take a closer look at what\u2019s happening, which could bring the possibility of a Treasury market collapse\u00a0or<\/em>\u00a0other troubling financial realities closer to the near-term.<\/p>\n

Starting with the U.S. Dollar<\/strong><\/p>\n

The value of the U.S. dollar rose 0.55% on Monday, January 11, and that was enough for Barron\u2019s to trumpet, \u201cThe Dollar Is Rising<\/a>.\u201d<\/p>\n

That\u2019s a misleading headline. The dollar\u2019s gain vanished quickly. Furthermore, the dollar\u2019s value has remained fairly steady since 2015. In fact, the dollar has yet to come near its most recent peak in 2002.<\/p>\n

Barron\u2019s explained the fall of the dollar from March until the recent uptick:<\/p>\n

The dollar has fallen by double-digit percentages since March because economic growth is expected to rebound faster globally than in the U.S. this year, while the Federal Reserve has slashed short-term interest rates to near zero. That has reduced the appeal of dollar-denominated debt, limiting overseas investors\u2019 need to buy greenbacks.<\/p><\/blockquote>\n

\u2026click on the above link to read the rest of the article\u2026<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Interest Rate Tremors May Spell Disaster for the Dollar Banksy As the U.S. plunges further into debt beyond a\u00a0staggering $27 trillion,\u00a0the dollar\u2019s time is running out. But the problem is much deeper than that. With inflation on the\u00a0rise, and long-term bond yields\u00a0rising\u00a0in concert with massive debt, some disturbing scenarios could develop that spell trouble for […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[18769,195,426,431,827,839],"class_list":["post-56454","post","type-post","status-publish","format-standard","hentry","category-economics","tag-birch-gold-group","tag-debt","tag-inflation","tag-interest-rates","tag-united-states","tag-us-dollar"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/56454","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=56454"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/56454\/revisions"}],"predecessor-version":[{"id":56455,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/56454\/revisions\/56455"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=56454"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=56454"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=56454"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}