More signs of incoming high rates…

Here’s a quote from a recent newsletter by Bill Murphy (dated May 9, 2004):

China’s chief forex regulator, Guo Shuqing, said in a recent Financial Times interview the make-up of the country’s US$440-billion forex cash pile was being altered to include more European and Asian bonds, given concerns over a weaker US dollar.

Along w/ the Japanese, the Chinese and Indians own a tremendous amount of US debt. I think they are the ones who are keeping this gigantic ship of debt afloat. So what the hell will happen when the Chinese, Indians and Japanese try to dump some of this debt into the world financial markets? A massacre in the bond market is given, but just think of what will happen to those innocent people w/ variable rate mortgages. Dear lord.