Americas Silver Corp fka USAPF

[retiredyoung99]

If that is true, he has made dam few appearances here during the past couple of years!!

Seriously, the stat that I watch most closely (even more than the price of silver) is the rate of return on the 10 year and 30 year bonds.

http://www.cnbc.com/id/15839203

I wasn't completely surprised by the decision yesterday by the Fed to continue buying 85 billion a month of our debt. I do not think they had a choice at this point. If the taper went into effect, just who else would step up to buy those bonds at these historically low interest rates.

Our two biggest buyers (outside of the Fed) are Japan and China and now they are actually net sellers.

If the Fed wasn't there to buy those bonds, the interest rates would have to rise to attract buyers. And our economy could collapse if rates on those bonds even went up to historic norms like 5 to 6%. That is because our debt has risen so much that if interest rates were even at normal levels, the amount that would have to go to just pay the interest would stagger our economy.

The question is, in my mind, is the genie already out of the bottle. In other words, is the obvious fact that our dollar is becoming more and more worthless going to force interest rates up (on a slow but gradual course) so that even with the Fed continuing QE, rates will rise?