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JETS SUPER BOWL THIS WEEKEND
Jetsfan0099 Icon : (Today, 12:57 PM) Lose the next 2
santana Icon : (Today, 12:59 PM) Dat skyrtel forehead
ganggreen2003 Icon : (Today, 01:07 PM) NICE SACK
XvNukemHighvX Icon : (Today, 01:09 PM) That was just drawn up great, totally confused the protection. Looked like 3 lineman had no one to block and were just confused
Jetsfan0099 Icon : (Today, 01:10 PM) lmao Jalen Saunders becoming a good return man with the Saints
Jetsfan0099 Icon : (Today, 01:10 PM) I think the Jets gave up on him too quickly.
ganggreen2003 Icon : (Today, 01:12 PM) these f***ing playcalls are horrible
ganggreen2003 Icon : (Today, 01:12 PM) another 3 & Out
Jetsfan0099 Icon : (Today, 01:12 PM) Harvin is tough, guy has a sprained ankle and isn't missing a game
azjetfan Icon : (Today, 01:12 PM) The one thing I won't miss with Rex gone is the stupid Wildcat
ganggreen2003 Icon : (Today, 01:12 PM) oy vey
Jetsfan0099 Icon : (Today, 01:12 PM) I want Harvin back
ganggreen2003 Icon : (Today, 01:13 PM) first time Pryor has made a play
Jetsfan0099 Icon : (Today, 01:13 PM) Pryor making a nice tackle there
ganggreen2003 Icon : (Today, 01:13 PM) almost flipping that POS amendola head over heels
Jetsfan0099 Icon : (Today, 01:13 PM) I still think Pryor will be a good safety for us, just put in a bad situation this season due to how bad we are at CB
Jetsfan0099 Icon : (Today, 01:14 PM) I'm excited for the season to end to see what changes are made
azjetfan Icon : (Today, 01:15 PM) Me too
ganggreen2003 Icon : (Today, 01:15 PM) I'm already putting Pryor into the Miliner category = BUST
azjetfan Icon : (Today, 01:15 PM) If Woody cleans house it should be an attractive place to come too. Some talent and a lot of cap space.
ganggreen2003 Icon : (Today, 01:16 PM) incomplete
ganggreen2003 Icon : (Today, 01:17 PM) at least the D is shutting them down so far
Jetsfan0099 Icon : (Today, 01:17 PM) That's good for you. Injuries derailed a promising season for Milber
ganggreen2003 Icon : (Today, 01:17 PM) but our O is horrendous
ganggreen2003 Icon : (Today, 01:17 PM) another 3 & Out coming up for the JETS O
Jetsfan0099 Icon : (Today, 01:17 PM) We are really pathetic at CB
ganggreen2003 Icon : (Today, 01:20 PM) our O SUCKS
azjetfan Icon : (Today, 01:20 PM) Can we just fire morningwig now?
azjetfan Icon : (Today, 01:21 PM) Geno waited to long to run
ganggreen2003 Icon : (Today, 01:21 PM) That 3 & Out was brought to you by Marty Morningwhig
ganggreen2003 Icon : (Today, 01:22 PM) If you want your D to get worn down...you get a Marty Morningwhig led O to do that
Jetsfan0099 Icon : (Today, 01:25 PM) Marty Mornhinweg is restricted by Rex
Jetsfan0099 Icon : (Today, 01:26 PM) We will never have a good offense under Rex
Jetsfan0099 Icon : (Today, 01:26 PM) Unless we had a proven veteran QB and good OL
Jetsfan0099 Icon : (Today, 01:28 PM) lmao @ brady
Jetsfan0099 Icon : (Today, 01:28 PM) Just keep hitting Brady
Jetsfan0099 Icon : (Today, 01:29 PM) I will miss seeing this defense vs Brady. Rex usually gives him more trouble than most do
ganggreen2003 Icon : (Today, 01:30 PM) will the O please have a drive longer than 3 & Out
Jetsfan0099 Icon : (Today, 01:32 PM) I wish we would injure Brady
ganggreen2003 Icon : (Today, 01:34 PM) hey at least they haven't blown us out yet
jetfan4life12 Icon : (Today, 01:45 PM) Please fire Idzick Begging you
ganggreen2003 Icon : (Today, 01:50 PM) we give them short field and they score
ganggreen2003 Icon : (Today, 01:51 PM) not surprised
ganggreen2003 Icon : (Today, 01:51 PM) and we'll have to settle for a FG
ganggreen2003 Icon : (Today, 01:52 PM) Mangold is hurt
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Get Ready For A 'massive Interest Rate Shock' Soon Bad news for the future economy.

#1 User is offline   azjetfan Icon

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Posted 27 August 2013 - 02:52 PM

http://www.cnbc.com/...0a%20%27massive

Long story short, get ready middle class and below. This one is going to hurt. Within a year or two middle class will not be able to afford to buy a house unless you already own one. Our debt is catching up with us.


Quote

Wall Street and Washington love to spread fables that facilitate feelings of bliss among the investing public.

For example, recall in 2005 when they inculcated to consumers the notion that home prices have never, and will never, fall on a national basis.

We all know how that story turned out.

Along with their belief that real estate prices couldn't fall, one of their favorite conciliatory mantras that still exists today. Namely, that foreign investors have no choice but to perpetually support the U.S. debt market at any price and at any yield.

But, unlike what their mantra claims, the latest data show weakening demand in overseas purchases of Treasurys.
Is the economy as good as you think?


According to the U.S. Treasury Department, there was a record $40.8 billion of net foreign selling of Treasurys in June. That was the fifth straight month of outflows in long-term U.S. securities. China and Japan accounted for $40 billion of those net Treasury sales.

Those two nations are important because China is our largest foreign creditor ($1.27 trillion), and Japan is close with $1.08 trillion in holdings.

This shouldn't be a surprise to those who are able to accurately assess the ramifications from the Federal Reserve removing its massive bid for U.S. debt.

In truth, yields currently do not at all reflect the credit, currency or inflation risks associated with owning Treasurys.

If the Fed were not buying $45 billion each month of our government bonds, investors both foreign and domestic would require a much higher rate of return. Investors have to be concerned about the record $17 trillion government debt (107 percent of gross domestic product), which is growing $750 billion this year alone.

In addition, holders of U.S. debt must discount the inflation potential associated with a record $3.6 trillion Fed balance sheet, which is still growing at $85 billion each month. Also, foreign investors have to factor into their calculation the potential wealth-destroying effects of owning debt backed by a weakening U.S. dollar.


Of course, some people may claim that Japan has more debt outstanding as a percentage of its GDP than we do and yet the nation's interest rates are much lower than ours...so what's the problem?

But, unlike the U.S., Japan has a long history of deflation and only 10 percent of its debt is in foreign hands. The U.S. has not enjoyed any such history of deflation and is also a country that has only 50 percent of its debt held domestically.

Therefore, there hasn't been any real concern about foreigners abandoning the Japanese bond market because of a fear that the Yen may collapse.

But the tremendous number of foreign U.S. creditors needs to be constantly vigilant of the dollar's value. However, due to its foolish embracement of Abenomics, Japan will also have to fear a collapse of its debt market from rising inflation in the near future, just as we do here.


If the free market were allowed to set interest rates and not held down by the promise of endless Fed manipulation, borrowing costs would be close to 7 percent on the 10-year note. Let's face it, the only reason why anyone would loan money to the U.S. government at these levels is because of a belief that our central bank would be there to consistently push prices up and yields down after their purchases were made.

Our central bank has now adopted an entirely new paradigm.

Fed intervention used to be about small changes in the overnight interbank lending rate, which has averaged well above 5 percent for decades. However, not only has the Fed funds rate been near zero percent for the last five years, but also long term rates have been pushed lower by four iterations of quantitative easing.

The latest version is record setting, open-ended and massive in nature.

Since QE is mostly about lowering long-term rates, it shouldn't be hard to understand that its tapering would send rates soaring on the long end.


When the Fed stops buying Treasurys, foreign and domestic investors will do so as well. This means for a period of time there won't be anyone left to buy Treasurys unless prices first plunge.

The effects of rising rates will be profound on currencies, equity prices, real estate values and economies across the globe.

It would be wise to prepare your portfolio for a massive interest rate shock in the near future.

—Michael Pento is an economist and president of Pento Portfolio Strategies.

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