Amazing that "The Bernank" hasn't learned that QE2,3,4,5 will have the opposite effect of what is intended, higher rates of interest instead of lower rates. The bond market is the only market brake on such foolishness. The same thing happened during the Carter years. Parabolicas always end badly no matter how large the "pool" operators are. Soaring and crashing equity markets,a bond market bubble, and a five dollar price on a gallon of gas, is what a imbecile central bank is hell bent on producing. The question is what is the end result, a 100 to 1 dollar devaluation? Probably down the road,but the cycle points to a deflationary spiral at some point.
The current chart of the TYX 30 year UST. Does it project a 7 pct yield in the future? History says yes.
The TNX, the ten year treasury yield has sky rocketed the last 2 days. Mr Bernank meet "Bondzilla".
"I used to think that if there was reincarnation, I wanted to come back as the president or the pope or as a .400 baseball hitter. But now I would like to come back as the Bond Market. You can intimidate everybody."
James Carville
