Housing Bubble

US Dollar Vulnerable to Interest Rate Cut, China Dumping US Bonds

I did mention I sold all my stocks and took the dollars and moved them into Czech crowns last month. I would recommend anyone else to do the same. I wish I had done it 7 years ago. I would have more than doubled my money.


Speculators, investors, and central bankers have figured out that the US government and the Bernanke Fed will not protect the dollar - not when millions of Americans are having trouble making their mortgage payments. The US money supply is increasing - nearly five times faster than GDP growth. And now, fearing a Japan-style deflation, the Fed is likely to cut rates later this month.The Chinese have one of the largest dollar piles in the world.“Is China quietly dumping US Treasuries?” asks Ambrose Evans-Pritchard in the English press.“A sharp drop in foreign holdings of US Treasury bonds over the last five weeks has raised concerns that China is quietly withdrawing its funds from the United States, leaving the dollar increasingly vulnerable.”

Read the Full Article Here


Home Prices Versus Median Wages

The graphs almost say it all, but the article is good too.

See any similarities between these 2 graphs?