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As debt weakens dollar, commodities get boost.

Publication: Indianapolis Business Journal
Publication Date: 25-MAY-09
Format: Online
Delivery: Immediate Online Access
Full Article Title: As debt weakens dollar, commodities get boost.(INVESTING)

Article Excerpt
By the end of this year, the U.S. government is going to be $11 trillion in debt. That's a lot of cabbage. And while it wasn't cabbage that inspired Newton, it is his other, lesser known, natural law that comes to mind--the more thou borrows, the higher thy borrowing costs shall be.

Soon, our government is going to be paying more than $500 billion a year just in interest expenses. Total income for the government is $2 trillion a year. About 25 percent of that will be dedicated to servicing the debt.

Based on the previously mentioned law of nature, we should expect to see the interest rate the government has to pay move higher. And that is exactly what is happening. At the beginning...

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