International Markets–“Mann International”– (Currency Crisis Is Inevitable)...
(NewDesignWorld Press Release Center) -- October 11, 2009, New York, USA- “Mann International” on why its preference for gold over bonds is likely to be vindicated.
“Mann International” analysts are thought to feel that the market for US sovereign debt will plunge into turmoil if the US Federal Reserve makes good on its promise to withdraw its program of treasury buybacks by the end of the year.
The Asian-based investment broker is convinced that bond yields have remained low in the face of potentially unlimited supply because of the Fed’s commitment to purchase $300bn of treasuries in its quantitative easing program and analysts at the firm say that the central bank is in a difficult situation largely due to the fact that a withdrawal could potentially send yields sharply higher and, consequently, impact on long-term interest rates elsewhere in the market.
Conversely, “Mann International” is of the opinion that an increased commitment to treasury buybacks could have detrimental effects on the US dollar thereby adding inflationary pressures on the goods that the nation imports like crude oil.
“Mann International” has consistently advised clients to avoid US treasuries as a means of preserving the purchasing power of their money and have, instead, advocated the acquisition of gold which has recently eclipsed its all-time record price of $1033.90 per troy ounce.
Analysts at the firm also point to a similar situation facing the United Kingdom which has a far more aggressive policy of quantitative easing relative to the nation’s GDP.
“Mann International” sources suggest that the outlook for both economies remains challenging and that their currencies stand to suffer on the foreign exchange markets.
http://www.manninternational.com
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