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[ThatHawaiiGuy]

Man your battle stations, this is no drill
Bob Moriarty
July 31, 2003

About seven weeks back I wrote a piece about the impending bond market crash. In it I said, " . . . when the bond market self-destructs (and that's on the cards shortly) the entire derivatives market is going to melt down. The bond market is a bubble. The US Federal Reserve is on the verge of buying up the long bonds to lower interest rates. (Let me see if I can understand this clearly. We are going to buy up a bunch of funny looking but basically worthless bonds with funny looking but basically worthless dollar bills. Why didn't I think of that? Of course).

The dollar is toast."


Take a gander at the chart below and see if you understand what I meant. On June 15th, the interest rate on the 30 year bond was about 4.2% and now, a short six weeks later, the interest rate is over 5.25%. In $150 trillion dollar derivatives terms, that's a crash that makes 1929 look like children playing in the sandbox.






The rest of it and a nifty chart:

http://www.321gold.com/editorials/moriarty/moriarty073103.html

It gets better: really worth the click...