Interest Rates Continue Up- Oil and Commodities Soar- June 10th 2009

June 10 (Bloomberg) -- Treasuries fell, pushing 10-year yields to the highest level since October, as the government sold $19 billion of the securities and Russia said it may switch some reserves from U.S. debt.

Marc's Notes:
Interest rates on US debt continue to soar in an unprecedented rise on US GOVT debt.

This does not bode well for Obama's Plan. The rock and the hard place I keep mentioning is here and the FEDS and you and I are caught between it. As the FEDS bailout every Tom, Dick and Harry, we are finding out what every other banana republic has found out before us.

You cant print money forever without consequences and our luck may be running out. I dont care who you are, you cant run printing presses with disregard and get away with it. History is rife with example of ruined economies who have tried it. Not ONE has been successful. The death knell to unbridled money creation is RISING interest rates. It always has been so.

And now look - interest rates are rising. Now the FEDS have to choose between rising rates or stopping the bailouts. They WONT stop the bailouts so on they will print. Interest rates will continue up and my worst fear, a US DOLLAR collapse, may be in the making. Maybe not tomorrow, maybe not next week, but maybe, just maybe, sooner then we might expect. If the dollar continues its descent and interest rates keep rising (one in the same), by trying to save one in ten homeowners, they may have doomed us all. We will see. Meanwhile, look at interest rates to be your clue. If they continue this historic (yes, it IS historic) rise, you MUST protect yourself.

This is SO important as a crashing US dollar will wipe out all stock accounts, all IRA's, all pensions, all bank accounts, all bonds, all checking accounts- everything denominated in US dollars will become worth a hell of a lot less. You think the stock market crash hit you hard? Wait until you see what a US dollar crash will do. "You ain't seen nuthin' yet!"

If you thought I meant business warning you about the banking crisis and housing crash in 2006, I REALLY mean business here. A US dollar crash, if it occurs, will make your losses in the last blow up seem like a cartoon before the main movie.

HEED THIS MY FRIENDS.

I am DEADLY serious. Don't take me lightly. YOU MUST PREPARE, and then HOPE/PRAY it doesnt happen. Don't believe me?

Then listen to last weeks interview with US COMPTROLLER (ret.) Mr. David Walker. As the head accountant for the US GOVERNMENT, HE SAID THE SAME THING! If you dont believe me, at LEAST believe him.

Holdings:

Physical gold and silver- ADD. The only "real" money and a time tested store of value against rising interest rates and falling dollars.

Oil- An incredible 4 week run! I cant sell this rally! HOLD for more profit. Holy cow!

Bank CD's and Treasury funds- Hold CD's but if you buy any now, buy nothing longer the 1 year out, better yet only 6 months. Per last email, switch some of your funds in SHY or VIPSX and TIP  into BIL and SHV for more stability.

Interest Rate Funds- Offset a crashing dollar and hedges your bank CDs and Treasury funds- Our funds- RRPIX and TBT are going to the moon Alice!  Wow. Dont book profits yet. HOLD for more $$$$$$$!

Dividend Payers- (see Dividend Payers List) Hold and add. These will help protect you against a US dollar crash and pay you to boot. The Chinese are buying these types of investments with their US dollars, you probably should consider it too.

New suggestion per last email- Natural Gas is the only commodity for the most part that HAS NOT participated in the latest commodity rally. Its is almost at its all time low. I am adding a hefty position this week. Just like SLV and Oil was a few months back, my take on it is a 50 % downside risk with a 1000% upside potential. I love trades with those kind of odds for a medium to long term hold. I am putting stops in to protect some of my oil profits and adding UNG. 

Obama Plays- Damn. At breakeven and I am hoping the stock market rally goes a little farther so I can take profits. I will hold for a Dow 9000. Please Mr.Wizard, make the fools buy a little more stock in this latest fake out rally so I can make some money!

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All the best for now!

marc