User 68127

Why I Feel TBT Is About to Become a Goldmine

Agree that rates must eventually go much higher.

As we sent money overseas for high priced oil, the money was recycled into our Treasuries, keeping interest rates artificially low. As we imported goods from China, they essentially provided vendor financing by purchasing our Treasuries, keeping rates artificially low.

Now that oil is at a fraction of its former price, and now that our imports are plunging, who is the incremental buyer of Treasuries?

You will have reduced demand for Treasuries just as supply surges due to massive deficit spending. What do you think will happen to Treasury prices? And if, in addition, the dollar drops...how long before foreigners unload?