Tornado Alley (PROG)

[SilverSurfer]

U.S. Treasury Bond Teetering Tower Of Babel


The key driver for valuing Treasury bonds at the moment is the utility they offer as a form of collateral among banks loaning money to each other. So with Europe’s debt markets in even greater turmoil now than when Greece’s debt got a “haircut” last year, T-Bond prices are zooming up once again to the top of the 3-decade rising trend channel.
http://www.ritholtz.com/blog/


Read he whole article link below,,,,

to bring light to the ultimate problem, that 0% is untenable when USGovt deficits are $1.5 trillion

each year (higher tower) as the USTreasury Bond creditors have abandoned them, sickened by unilateral central bank decisions

to monetize debt and hand out lavish grants to bankers... the USTBond market is held together by the hidden Interest Rate Swap

contracts managed by JPMorgan Chase, which secretively applies grand 50:1 leverage, in addition to the USFed, which is the only

remaining reliable buyer in a display of pure hyper monetary inflation... the unstable tower is reacting badly to high winds from the

European sovereign debt crisis but also to the stupid attempt to talk through an Exit Strategy... recent JPMorgue losses will total far

more than the $3 to $5 admitted to date, since a chain reaction has been triggered deep within the system that cannot be stopped,

and will continue until the USTBond market asset bubble is broken and the USDollar trade vehicle is abandoned on the road side...

the pure fuel of negative interest rates continues to power the Gold Bull market, which will continue to benefit from the permanent

0% official rate... the USFed is stuck at 0% forever, tragically, and they know it... the Gold price will skyrocket when the full

extent of JPMorgue damage is properly estimated and comprehended... their losses will be in the hundreds of $billions by next year

http://www.marketoracle.co.uk/Article34819.html


http://www.goldenjackass.com/main5.html