Everyone knows the U.S. government has the biggest debt load in the world and that our debt will be close to 150% of U.S. GDP in eight years
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New York, NY (PRWEB) December 24, 2011
The rush into U.S. Treasuries will be short-lived, as investors scramble for security while ignoring long-term structural problems, according to Michael Lombardi, lead contributor to Profit Confidential.
“I’ve been studying the 10-year U.S. Treasury market and can’t believe funds are pouring billions into 10-year U.S. Treasuries paying a paltry 1.9%,” says Lombardi. “Everyone knows the U.S. government has the biggest debt load in the world and that our debt will be close to 150% of U.S. GDP in eight years.”
Lombardi reports that the U.S. debt crisis is really bigger than the eurozone debt crisis.
Profit Confidential says the reason investors are avoiding Italian and French bonds is that they don’t know if they will get their money back. German officials have been consistently stating that they don’t want the eurozone countries printing anymore money.
“Our government just prints more money when it comes time to pay back debt,” says Lombardi. The result of that strategy, Lombardi writes, is that you create a lot of long-term problems, namely inflation and the loss of value in the currency, which will erode assets and savings.
Profit Confidential, which has been published for over a decade now, has been widely recognized as predicting five major economic events over the past 10 years. In 2002, Profit Confidential started advising its readers to buy gold-related investments when gold traded under $300 an ounce. In 2006, it “begged” its readers to get out of the housing market...before it plunged.
Profit Confidential was among the first (back in late 2006) to predict that the U.S. economy would be in a recession by late 2007. The daily e-letter correctly predicted the crash in the stock market of 2008 and early 2009. And Profit Confidential turned bullish on stocks in March of 2009 and rode the bear market rally from a Dow Jones Industrial Average of 6,440 on March 9, 2009, to 12,876 on May 2, 2011, a gain of 99%.
To see the full article and to learn more about Profit Confidential, visit http://www.profitconfidential.com.
Profit Confidential is Lombardi Publishing Corporation’s free daily investment e-letter. Written by financial gurus with over 100 years of combined investing experience, Profit Confidential analyzes and comments on the actions of the stock market, precious metals, interest rates, real estate, and the economy. Lombardi Publishing Corporation, founded in 1986, now with over one million customers in 141 countries, is one of the largest consumer information publishers in the world. For more on Lombardi, and to get the popular Profit Confidential e-letter sent to you daily, visit http://www.profitconfidential.com.
Michael Lombardi, MBA, the lead Profit Confidential editorial contributor, has just released his most recent update of Critical Warning Number Six, a breakthrough video with Lombardi’s current predictions for the U.S. economy, stock market, U.S. dollar, euro, interest rates and inflation. To see the video, visit http://www.profitconfidential.com/critical-warning-number-six.