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Treasury interest rates the signal of doom?

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  • Treasury interest rates the signal of doom?

    I just finished Martin Weiss's book "Crash Profits: Make money when stocks sink or soar" Pub 2003.

    Perhaps Martin was speaking of the dot com bust up, but this book is still applicable to the current situation. Maybe he was just too early in his predictions.

    Anyhow, the book reads like a narrative of the typical CNBC trained investor, getting re-educated by a independent financial planner, who has lived through other great bear markets. The book is focused on debt overhangs, financial malfesence, and a tanking stock market. The book talks about getting out early, and also how to minimize your losses if you didnt get out in time.

    Just like now, the government gets involved, slashes interest rates, and starts bailing out everyone trying to avoid the inevitable collapse. The turning point of the book is that eventually, creditors to the U.S. realize that the amount of borrowing will never be paid back and treasury rates begin to soar. At some point the gvt realizes that it either recks its credit (defaults), or renigs its promises and lets the economy collapse. It chooses the later, removes all the props and the markets really crater.

    Will we see this scenario play out? Or will the fed start buying treasuries, to stablize interest rates, but we see the dollar crash?

    Any thoughts on Martin Weiss, treasury rates skyrocketing, governement adimitting it cant prop up the system as the signal of the final end.