It was a panic, not an attack. International investors are trying to continue artificially propping the dollar and to keep it as the reserve currency. There are balance of payments deficits because of the trade deficits. Without an enormous increase in our manufacturing base on U.S. soil very soon to provide real revenues (not U.S.-”based” manufacturing on foreign soil), bonds yields will rise rapidly, while prices plummet.
Interest rates will skyrocket, then radical market plunges, layoffs, etc. Bond prices will collapse, resulting in haircuts for bond investors and pensioners. Hasty, deep cuts in government spending too late, resulting in even fewer consumers spending. Vicious cycle. The dollar will drop like a rock. More self-sufficient countries and groups of countries will keep oil prices high.
What is the conventional wisdom as far as renting/buying at a time like this? I heard a dollar collapse would cause rent to skyrocket, so it’d be better to buy now with a locked in interest rate. Is that true?
Increased oil production is accomplishing a lot of that. Without it, we'd have crashed several years ago.
Yup.
American investors have bet short, on their own country.
Going long on a nation, which won’t even allow them to buy land.
America needs to encourage American investment again.
Soon.