Why Countries Dumping U.S. Debt Should Worry You - YouTube

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Good morning and
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thank you for watching
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U.S. Money Reserve's
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Market Insights.
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Today, we're gonna continue
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to talk about some of the
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things we talked about
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last week, and that's gonna be
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U.S. treasury bonds
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and an overvalued stock market.
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Last week, many of us
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experienced and watched
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Facebook continue to
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fall and plummet,
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taking one of the largest
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stock losses in U.S. history.
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This is exactly what
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we're talking about is that
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we have four companies,
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or four corporations
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that are currently carrying
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majority of the value
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in the U.S. stock market.
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And today, on CNBC News,
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it has been identified
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that since March,
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Russia has dumped more than
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80% of the U.S. treasury bond.
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They've gone from about
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91 billion
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down to 14 billion
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in about 2.5 to 3 months
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Remember, several months ago,
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China was doing the same thing.
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Now China's gone back in
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and purchased more
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U.S. treasury bonds,
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leaving China and Japan
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being two of the largest
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holder of U.S. treasury bonds
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in the entire world.
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The remaining
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of treasury bonds,
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which is about 21 trillion,
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which is right at the
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national debt of the country,
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is sitting at about
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21 trillion in the
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United States, and about
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6 trillion accumulative
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sit outisde of
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the United States.
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Remember last week
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as we've talked about
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the four things that
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could be critical to the
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U.S. economy.
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And as we've talked
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for over a year now,
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three key indicators
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that the Treasury Department
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issued in 2013,
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that they felt that
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could be a catalyst
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to the recession of the
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United States, or lead into
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a depression in the
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United States, though I
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hate using that word,
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but that is the word that
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they used, is that
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treasury bonds would be
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one of the key elements
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and catalyst, to the
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U.S. economy.
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Number two was
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interests rates and
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and number three was
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a decline in the U.S. dollar.
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Those three compartments
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that we've been talking about
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have continued to be a
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topic for the last
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year and a half,
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in these videos.
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And as we continue to
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do these videos each one
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of those elements continue
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to be a piece of the puzzle
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that continue to
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keep coming up.
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And they're becoming
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more volatile and they're
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becoming more fluid
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inside the markets.
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We typically don't see
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countires like China
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go out and dump about
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43 trillion or billion
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in U.S. treasury bonds.
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We don't see Russia
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in a period of time
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since March till now
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go out and dump
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81% of their entire holdings
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of U.S. treasury bonds
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Now some individuals
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will say, this is a financial
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move or a form of
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asset management in regards
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to the economy because
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treasury notes are at a
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high since 2011.
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Or it could be because
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the United States is
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placing sanctions against
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Russia, or has placed
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sanctions against Russia,
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as they invaded Crimea.
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It could be,
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there's a possibility of that.
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But at the end of the day,
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the trade war, the tarrifs
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that are being placed,
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these are fundamental
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issues that normally would
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not be in place
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if the United States economy
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was not suffering,
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or in a position of being
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extremely fragile
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at this moment.
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Here in a few weeks,
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the most important and
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most critical thing that
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we have think about
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is the stock market
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will be at a point
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on the longest run
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in U.S. history,
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never been done
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in U.S. history.
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If we make it I think
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since or past August 10th.
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Think about that for
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just a second,
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your money is sitting
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in an area where there's a
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401k or an IRA,
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or in the stock market,
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in a run that has never
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lasted this long in
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U.S. history, after about
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August 10th, so think about
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that for just a moment,
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is that once it reaches
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past that moment,
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how much more room,
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how much more room is
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still eligible for your
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money to continue to grow
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without some type of
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major recession,
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or a major correction
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taking place after that moment.
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The upside is
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extremely minimal.
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The downside,
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is extremely large.
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And that's what you
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have to be thinking about.
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If countries around the world
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have been manuevering away
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from the U.S. economy,
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since 2014,
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and we start seeing
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a massive sell-off
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in U.S. treasury bonds
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by major countries,
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it is a telltale sign
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of some of the things
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we've talked about.
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You also can't go back
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several months ago and
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know that the U.S. economy
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was running out of money
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when we met the
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dead ceiling crisis,
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but we have an economy
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that's supposed to be
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one of the most robust
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that we've seen in years.
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And we have a stock market
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that's at a record high.
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How can we have a stock market
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at a record high,
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but on the flip side,
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the U.S. economy's running
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out of money?
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Think about the things
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we've talked about
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in these videos or go back
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to some of the videos that
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we've talked about in the past.
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We've got tax cuts
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that were taking place
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in the beginning of the year.
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We have the repeal of
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the Dodd-Frank Act,
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or portions of the
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Dodd-Frank being rolled back.
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And then you start seeing
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the tarrifs being placed
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on foreign countries,
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and then you have
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an accumulation,
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or a combination,
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of countries selling off
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U.S. treasury bonds.
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I think this is more
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about fear,
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and asset management
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of that fear,
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than it is of them
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just making general manuevers
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in the financial world.
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Think about what we've
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talked about. As always,
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thank you for watching
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U.S. Money Reserve
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Market Insights.
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As always, we've got the
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new flyer, which is
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U.S. economy, a house of cards.
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This is the new topic
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and subject we're on.
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For your free copy,
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make sure you click on
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the link or call the
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phone number below,
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and that'll get you
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your copy of this.
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And as always,
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thank you for watching
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U.S. Money Reserve's
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Market Insights.