This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

China Trade Deficit Equals Treasury Doom

The phrase "cornered rats" comes to mind when contemplating the collection of Fed officials hunkered down in their propaganda bunker. They have used up each and every tool in their monetary toolbox. They have used up every myth to try to make it sound like the U.S. still had a functional market for its sovereign debt.

Now, just as the U.S. municipal bond market teeters on the brink of an horrific collapse, we also have the debt market for the U.S.'s sovereign debt suddenly appearing every bit as fragile (i.e., ready to implode).

The debt schemes that have allowed the U.S. government to avoid assuming any fiscal responsibility for its incompetent management of the economy are about to collapse, and nothing can change that reality.

This makes the warning of "imminent hyperinflation" for the U.S. economy more pertinent than at any time since Shadowstat's John Williams started sounding the alarm nearly a decade ago.

This also means the window of opportunity for U.S. dollar-holders to convert that worthless paper to gold and/or silver on any kind of favorable terms, is about to permanently close. While most, if not all, of this confetti is headed to zero, it is obvious that the greenback will be the first major currency to collapse.

A "trade deficit" for China equals the end of the line for the Federal Reserve's bond Ponzi-scheme.

This commentary comes from an independent investor or market observer as part of TheStreet guest contributor program. The views expressed are those of the author and do not necessarily represent the views of TheStreet or its management.
3 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
AAPL $124.75 0.00%
FB $80.78 0.00%
GOOG $524.05 0.00%
TSLA $206.79 0.00%
YHOO $44.45 0.00%

Markets

DOW 17,826.30 -279.47 -1.54%
S&P 500 2,081.18 -23.81 -1.13%
NASDAQ 4,931.8150 -75.9760 -1.52%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs