Amazing. Our currency is the standard because we owe all the money and have the world’s consumers.
Unfortunately, we are being lulled into a false sense of security. Investors are leaving the Euro and rushing to US treasuries, hence interest rates are low.
The long term prognosis is not good for treasuries. Since the economy is not doing well, banks are investing in treasuries as well. When banks do not invest in the private market, wealth creation shrinks, leaving less capital for investment, both in treasuries and securities. Sooner or later this capital is going to dry up and rates on treasuries will go up.
Our say will come because we are on the same path as Greece. Who is going to bail us out?
Check this link after 9PM eastern time to see what I am talking about. The link will only work between 9pm-5am if you are not a paid member of TF. Even I can not view it right now.
Treasury Redeems $643 Billion In Treasuries In April:
http://www.tickerforum.org/cgi-ticker/akcs-www?post=135701