Wednesday, June 10, 2009

Historic Bond Market CRASH Underway…

Here’s a two year chart of TLT, the 20 year bond fund:



You can see the parabolic rise and subsequent collapse that is continuing today. I expect prices to descend to that rising uptrend line and will most likely find support there, at least temporarily. Over time it will likely NOT maintain support as we are entering a new era, one defined by raising rates versus the old era, the last 30 years which were defined by falling rates.

Folks, your government has already DEFAULTED on its debts, that’s what “quantitative easing” is. When one can no longer sell their debts they resort to buying up their own issued debt with fake and newly printed money. This is what national default looks and feels like for a country that is the world’s reserve currency.

The 10 year just hit a new high today as well – interest rates on fixed rate mortgages are skyrocketing. Get a clue America, you have been sold out.

To learn more, please read:

Bond Market Hide & Seek – A Domed House & 3 Peaks...

Interest Rate Update…

Interest Rates and Equities Diverging…

A Tale of Two Depressions…

Sales – Still More Economic Cliff Diving…