Interest rates on 30-year U.S. Treasuries have flatlined for the last two years between 4.75% and 3.51%.Â In the same time period Gold has gone from on an up-escalator ride from $859 to $1,565.Â Silver has gone from $11.82 to almost $50.Â The CRB has gone from 209 to 370 and Crude oil has gone up from $46.72 to above $114.
Interest rates might have stayed flat if the USD had moved higher, but the USD Index has dropped from 87 to 74 back to 88 and now 73!
With the dollar falling, commodities moving higher, and the U.S. monetizing its debt, someone soon will demand a higher return for buying our bonds.Â I think that time may come within the next several weeks.Â Already the 200 day moving average is moving higher, we are at the recent lows of 4.38 and a daily buy signal would come at 4.5% and next week a weekly buy signal would come at 4.5%.
Some say that we are another Greece in the making.Â Why in the world would you accept this low of an interest rate to take on the risk of inflation or default?Â Barring a collapse in precious metals, expect higher interest rates soon.
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