Lock-in your interest payments, now!

in #money7 years ago (edited)

This is why everybody is looking closely at US interest rates

As short term yields are now at the highest in almost a decade (see chart below showing the 2 years yield of US treasuries), it is worth thinking about the fact that, not only the US Government, also the rest the World has borrowed many dollars in the last few years.
Screenshot_20180213-135705.jpg

Many in the market are talking about the end of the low-yield period. While higher yields will "help" the US economy from overheating, at the same time, it will have a strong effect abroad.
The reason is that foreign governments and corporations have pile up dollar denominated debt to unprecedented levels. As reported by the Bank for International Settlements (BIS). Total debt, in USD, outside the US, was at 11 trillion USD, as of September 2017.
Should interest rate continue to rise, all those borrower will face bigger interest payment (if they have not locked-in long term contracts at fixed rates). The impact will very much depend on how an institution is financially agile.

It is clear that, when the Fed, and if, will increase rates further, it will not only impact US domestic debt, but actually its impact will be even more felt across the World, to a much greater extent.

  • Are you in debt?
  • Have you fixed your rates?
  • Whether that will be in USD or in EUR or in CHF, rates are rising. Fix your debt payments now!
  • And dont forget, central banks will print their way out of debt, when needed, so make sure to diversify and yes buy some cryptos too, especially Dash which I like very much,

Bests,

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Thanks for the advice, but this will apply also to houses mortgage? I'm not in debt but many relatives of mine are...
Non scrivi più in italiano? :P

Ciao @airmatti yes absolutely this very much meant to be related to mortgages. For CHF is also the same argument. Ciauuu

Ok thanks!!

In questo mondo globalizzato è opportuno più che mai prestare attenzione a ciò che succede in campo Internazionale ed io credo che le cryptovalute siano l’espressione più logica di tutte le nuove dinamiche. Come ho già espresso più volte personalmente ho un debole per Dash. Ottimo post!

Hello @fedescolari..Nice post!Thanks for sharing

se non posti in italiano non ha senso usare il tag ita @fedescolari

Ciao @thenightflier
Ok pensavo fosse necessario per il voto auto.
Grazie della dritta
Buona giornata a te

A country with a lot of debt, partly because it loses the price of crypto is very high, even some countries issue an issue not to use crypto again.

Ah, they probablity locked them in. The trouble arises when they have to roll them over...then everything will roll over (lo).

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