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Posts Tagged ‘USTBs’

USTBonds: the monster spleen

Posted by seumasach on October 5, 2011

 

 

 

 

 

 

 

 

 

 

 

Jim Willie

Gold Seek

4th October, 2011 

 

The USTreasury Bond rally over the last few months has been celebrated. Some call it a contradiction of the Standard & Poors debt downgrade of USGovt debt. Some hail the rally as proof that the USDollar remains respected as global reserve currency. Some regard it as a sign of bond market health in general. Some claim the US remains the safe haven. These are all errant views to the extreme, comments from cheer leaders to a system in deep deterioration, distractions from reality. The United States is stuck in a powerful recession, its huge federal deficits set to expand further, the fiscal austerity to be sacrificed, the turmoil in Europe rendering the US panorama more alluring and cute. The USTBond is in strong rally mode because theUnited States is in the process of systemic failure, leading ultimately to some form of official debt default. The Greek Govt Bond yield rises from its fractured insolvent ruined status. The USTreasury Bond yield falls from its fractured insolvent ruined status also. It is a Black Hole, attracting funds from productive chambers of the USEconomy and pulling them into the dark place loaded with deficits, defaulted debts, and decay of capital. Let us not celebrate the USTBond rally. Instead, work to end it before the expanding spleen removes all the blood from the body economic. The organ serves as a reservoir, whose size must be contained. Unfortunately, important factors prevent the bond rally from doing anything but consuming the entire nation and confiscating its wealth.

 

 

 

 

 

 

 

 

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