elwind45

Holding Multinationals? Look Out for the Rising Dollar

The national debt higher rate arguement is a natural assumption. The amount of money flowing out of commodites and the dollars returning home from overseas markets should hold rates down as investors hoard treasury debt. The only remaining tool in the feds toolbox is to lower the discount/fed funds from 2 down to around a half. The arguement is to lower rates to remove some pressure on I-bank portfolios. This will be acomplished under guise of helping the homeowners in trouble. The brokers will find it easier to throw the people out and let the government make up the difference. I believe that more central banks will force feds hand by selling dollars to defend their currencies (a la KOREA). I find this talk of the ECB lowering their rates nonsense. The ECB would never lower rates while currency is in freefall. Our rates must fall. All the treasury work would be destroyed without rate cut!