Tuesday, August 25, 2009

Is this Decoupling?

Jim Willie, CB has a very relevant article at Financial Sense University. The chart that illustrates his critical points is below. I would recommend that this be read in its entirety and therefore I will not attempt to highlight points in this post.

This chart shows foreign investors fleeing the dollar and the US bond markets. I think this is the first step of decoupling that folks like Peter Schiff have warned about while many refuse to admit it is even a possibility. His most recent video blog below Schiff speaks to this point. When the US begins to market its securities in foreign currencies you will know that we are indeed looking over the cliff of hyper inflation. This paragraph is my opinion and not Jim Willie’s or Peter Schiff's.

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