Interest rate outlook...

The Chinese Premier recently promised to let the Yuan to rise against the dollar. However, no one's been paying attention to this. I believe that this could significantly weaken the dollar. When the Chinese Central Bank (CCB) stops printing Yuan to buy dollars, the biggest source of demand for dollars will dry up.. Also, as the Yuan rises, Chinese imports will rise in price. This is inflationary.

Bottom line: short term, rates may fall, but long term, rates will surely increase.