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Why the Fed had no choice


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#1 nimblebear

nimblebear

    Welcome to the Dark Side !

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Posted 22 September 2011 - 10:16 AM

http://content.scree.....g Channel.png

The government debt and spending has exploded to such gargantuan proportions, BEn knows that the only thing from keeping the country imploding upon itself, is very very low interest rates for a long long time. It really cant control that however, but the mirage it perpetrates is useful for a few hours anyway.

See the service of the debt is now at such critical levels that ANY increase of long term rates is just going to turn the US into Greece in a matter of months. Currently the Fed is on damage control. QE is officially done. QE can't manage rates any lower, so what happens from here is anyone's guess.

the rush into dollars is essentially the denoumenent. The dollar will peak very soon, and from there Gross can place his mega bet to short the hell of every treasury up and down the entire curve.

The bond markets have been the lynchpin for more than 30 years, holding together the fiat money charade.

They are now so distorted, so warped beyond all recognition, they no longer serve any useful purpose for money managers across the globe, other than to provide a temporary respite from plunging into the deep dark depths of hell.

The markets are coming unglued because of the distortions in bonds, and so from here the whipsaw will be utterly phenomenal. You will see massive down for weeks on end in equities, then massive ups. It will appear to look sideways or even bottoming at times, but it will be anything but in the IT.

It will be quite entertaining to watch, and when gold bottoms around $1400, it will be the buy of a generation, even moreso than it was at $800, or even $290 back in 1999. Its rise from there will be so breathtaking, that even the most bearish of fools who hate gold, will be forced to collapse. Everyone will be on the bandwagon and the wagon will last for years.

TBT is now a screaming buy, so have some fun folks, as you are in the ride of a century. :D :P :lol: :o :wub:
OTIS.