New York, New York (PressExposure) September 02, 2009 -- "Source One International" is thought to believe that the US dollar is one failed bond auction away from a disorderly collapse.
Analysts at the Asian-based firm reason that with the trillions of dollars of government debt being issued, bond investors will begin to demand higher yield rates for the risk of holding the bonds of the world's largest debtor nation.
"Source One International" is said to be skeptical of over-optimistic mainstream commentary that suggests there is an insatiable investor appetite for US bonds. The consensus among analysts at the firm is that because of uncertainty over the global economic recovery, treasuries have enjoyed a stay of execution because investor sentiment is leaning more toward safety than risk.
"Source One International" has made little secret of its preference for gold and silver over US bonds as a wealth preserver citing the systematic stealth devaluation of the US dollar as the prime reason for not holding the bonds. The firm is certain that bond yields will rise in the coming months and that this will force interest rates higher at a time when the fragile US recovery can least afford them.
"Source One International" has said that it is unlikely that an orderly down leg for the dollar can be engineered because of the lack of international co-operation and it is more likely that the move down will be sudden and destructive.