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The Last Shoes To Drop, The Bond Market Begins Its Long Evaded Crash

By: Steve Johnson

6/1/2009 - 40 Comments

Government bonds are simply a promise to give your money back with interest sometime in the future.

Peter Schiff predicted years ago that the dollar will eventually sink, as the currency of the largest economy in the world is forced to pay for decades of over consumption.
Reading Peter's 2006 book "Crash Proof" is like reading a history of what happen in the crash of 08. Every detail of the subprime housing bubble inflated by years of low interest rates from Allan Greenspan led to the housing crash that started in 07 and the stock market crash of 08 was written before it happen.  The only part of Peter's book that has not come to past is beginning to unravel before our eyes - the bond market crash.
In the last few months, the bond market has started to show some troubling signs and the dollar is dropping faster then ever before.  Up until a few months ago, the bond market has been strong as the demand for safety has kept many investors invested in the bond market. 

But now that the global economy is starting to show that it has not been as devastated as badly as everyone thought by the US recession, investors are moving trillions into foreign investments with more promising futures.
The US economy is in shambles, consumer are broke and inflation is about to run wild as trillions of new dollars start to circulate.

A collapsing bond market means higher interest rates. Higher rates will decimate anyone with any debt, whether they are individuals, companies or governments. 

President Obama likes to believe the recession is only a temporary problem and that the US is 'abundantly' rich with wealth beyond any other nation.  This is nothing more than presidential optimisum.  The real econonmy cannot support the over consumption of the past decade, funded by credit expansion and massive debt.
The bond market crash that is just getting started is about to take the wind out of any hope of economic recovery.  Interest rates have already begun climbing, which will further depress the housing market and push oil and gold prices up.  Then, inflation will terrorize the economy with unstable prices.  The true terrorists are in Washinton leading the nation to bankruptcy.
The recession is far from over, the housing market crash of 07, stock market crash of 08 and now the bond market crash of 09 – what could be worse? 

If the government does not change directions quickly and stop increasing the money supply while expanding credit we could see a currency crisis in 2010

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Crash Proof

Peter Schiff has predicted the economic hardship more accurately then any other economist in the world in this book. Everything from the housing crash to the credit crunch to the stock market. Peter has a plan to help you servive the crash. Peter explains why the Wall Street investment firms are still trying to sell you stocks, and was the house prices are likely to continue to decline for years to come.

Freedom: America's Competitive Advantage in the Global Market

Gamble argues that globalization brings far more benefits to the U.S. economy than it takes away. Gamble shows that both Europe and emerging economic powers like China and India have serious long-terms problems linked to their cultures, political structures, occasional instability, and state ownership of companies. These and other factors will eventually put a brake on the economic growth of hot emerging economies. The fundamental protections of property and free speech, a culture that promotes and rewards entrepreneurship, banking policies that make capital easily available, are still more supportive of economic growth and wealth creation than can be found anywhere else.

The Hyperinflation Survival Guide: Strategies for American Businesses

The Hyperinflation Survival Guide offers strategies for business managers to keep their enterprise afloat in the midst of runaway inflation. Within this succinct little book are a plethora of sensible business strategies for American businesses. If businesses are to survive they must effectively counter and minimize the ill effects of rampant inflation and/or hyperinflation. The utmost prudence is required in managing accounts receivable, inventory, and production at such a time. A sudden inflationary economic downturn may very well bring a business to its knees leading to insolvency.

Day of Reckoning

In Day of Reckoning, Pat Buchanan reveals the true existential crisis of the nation and shows how President Bush's post-9/11 conversion to an ideology of 'democratism' led us to the precipice of strategic disaster abroad and savage division at home. Ideology, writes Buchanan, is a false god that seeks vainly to create a paradise on earth. While free enterprise is good, the worship of a 'free trade' that is destroying the dollar, de-industrializing America, and ending our economic independence, is cult madness.