The Federal Reserve has been saying that we will have three interest rate hikes in 2017. They have to get started if we are going to have three. People thought the Federal Reserve was going to say something to indicate that maybe it would be in March. They made no such comment. (SPDR Gold Trust ETF (GLD), SPDR S&P 500 Index ETF (SPY))
Feb 6, 2017
The U.S. Debt Bomb Is About To Explode
The U.S. debt bomb is going to explode. What the Federal Reserve has been doing, by keeping interest rates practically at zero has prevent the bomb from exploding. With interest rates at practically at zero we could afford to service the debt, repaying it is impossible! But at least we could service it when interest rates were at rock bottom. But that is already changing. Interest rates are going up, inflation is going up and creditors are going to demand a higher premium to hold our bonds. We are headed off the edge of a cliff! (iShares Barclays 20+ Year Treasury Bond ETF (TLT), 10- year U.S. Treasuries)
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