Two More Market Bubbles About To Pop

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"While the world is still seeking safety in paper fiat currencies, there is only one alternative left to the U.S. dollar as it fails, and that is gold."

In 2008, we witnessed three market bubbles popping:
  1. The Real Estate Bubble
  2. The Stock Market Bubble
  3. The Commodity Bubble
Each of these markets remains stagnant, and we still seem to have a long way to go as the world continues down the road of deleveraging.

As a result of the global recession that has ensued, the stakes for individuals, businesses, and world governments are becoming greater and greater by the week. Governments worldwide seem to be caught like deer in the headlights with their only available option being to inflate like there is no tomorrow.

And now, on top of everything that's already happened, it appears that we have two more bubbles that are going to pop this year:
  1. The Commercial Real Estate Market Bubble: Within the next few months we are going to see a massive amount of commercial real estate go into default mode. But the damage from the burst of the commercial real estate bubble will seem modest compared to the fallout from the pop of the U.S. Treasury bubble.

  2. The U.S. Treasury Market Bubble: U.S. Treasuries are the main asset held by the rest of the world's central banks as reserves behind their own national currencies. Yields are certain to move higher in 2009 as the U.S. Government tries to borrow more than $2 trillion or more.
We don't know yet how much, but reasonable estimates have the budget deficit for this year in the United States between $2 and $3 trillion, conservatively! As yields skyrocket, all bonds, including U.S. Treasuries, will plummet. And when the U.S. Treasury bubble bursts, the onslaught in world bond markets will be catastrophic.

This will be the last bubble to burst. The U.S. Treasury bubble is the "Game Over" bubble.

The U.S. dollar's and U.S. Treasuries' heading lower at the same time will wreak havoc with the foreign central banks desperate to replenish their reserves and maintain order within their pubic banking sector.

Amid the mayhem that will ensue, central banks, governments, financial institutions and private investors around the world will harmonize in thought. They'll all rush to buy gold.

The rush to gold is going to be incredible over the next several months. While the world is still seeking safety in paper fiat currencies, there is only one alternative left to the U.S. dollar as it fails, and that is gold.

Gold World still recommends holding physical precious metals and quality gold and silver stocks. The popping of the commercial real estate and U.S. Treasury bubbles is going to cause major problems here in America and worldwide. The time to prepare is now.

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