By Chuck Butler Man, I sure stirred up the hornet’s nest yesterday. If you caught my article, I told you all about what a farce the jobs report was, and what a feeble job the media did in reporting the “real numbers.”

Given the response, I’d say most of my readers had their eyes on the jobs report. And that’s all I’m going to say about that…

I also told you how President Obama plans to create “600,000 new jobs with his stimulus package,” and how the BLS (Bureau of Labor) could just create them out of thin air. Apparently, people weren’t pleased with my comments on Obama either.

One reader asked me what the President had to do with currencies, in an attempt to obviously steer me back to just chatting about the Forex markets each day. But seriously, perception is a BIG thing in currencies folks.

If your leaders are perceived to be one way or the other, it can play big into currency direction. So, to say that what I had to say didn’t have anything to do with currencies is on the wrong path.

Treasury Yields Continue to Rise – Making Your Treasuries Even More Worthless!

Okay enough of that! Once again, traders are concerned that the U.S. won’t have anyone show up for a Treasury Auction. In fact, US$35 Billion in 3-year Treasury Notes will be auctioned today. That just reinforces the idea that owning dollars probably isn’t a wise thing to do right now.

Meanwhile, Treasury yields continue to rise. If you’ve been keeping score at home on these rising yields, the 10-year Treasury hit a yield of 3.83% yesterday. Now that might not sound too high, but at year-end 2008, a mere five months ago, the 10-year’s yield was 2%.

And if you just keep bringing more supply after more supply to the markets, they are going to demand that those yields get even higher!

And let me remind you that as the yield on a bond goes up, the price of the bond goes down! For example, five months ago, at 2% the price was 110.08. And at 3.83% the price is 94.20 (according to my Bloomberg!).

So…All those investors that bought Treasuries last summer in a flight to safety, need to check their statements!

“New World Reserve Currency” Definitely On the G-8 Agenda

There’s a preliminary G-8 meeting this weekend to set the agenda for the Big G-8 meeting in a couple of weeks.

I have to think that the currency moves in the past three months have got to be on the agenda. That and China’s latest rumblings about the dollar as a reserve currency.

Speaking of China, the World Bank President, Robert Zoellick, was talking at a conference in Montreal last night. He said that China may seek to diversify its foreign currency holdings over time, moving them away from U.S. dollars.

According to Zoellick, “Over time I could see china moving to some further diversification of its reserves.”

He obviously sees it. But do the Chinese see it as a need? One would think that they do, given their worries that a weaker dollar could hurt Chinese investments in U.S. assets, and the fact that they brought an alternative reserve currency to the table back in March.

Again, if these China rumblings continue, I have to say it’s not the wisest time to hold onto to your dollars…

EDITOR’S NOTE: Our in-house research team just finished our latest report on China’s long-term plan to steal your dollar’s value. (The report includes details on how to “trade up” those dollars for quick profits as the quiet attack on your dollar continues.) Get your copy of this report here FREE.