THE DAMS A BUST'N

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Today Goldmeasures is very pleased to present a guest essay form Steve (Known as SRSrocco) A respected poster on the Jason Hommel Forum:

WATCH OUT....FIREWORKS IN THE US TREASURY-BOND MARKETS


Many of you might not be aware....or on the other hand...maybe you are. The treasury and bond markets are blowing up as we speak. This is not a normal correction...or what happens in response to the stock markets. We all know, that when the stock markets head higher, so do the treasury and bond rates. The opposite is true as well. We have to remember, that when treasury-bond rates head higher...the yields head lower...thus these investors lose money.

The fed is trying to keep long rates down...by buying 10 year treasuries. Also, the 30 year bond rate (which is not that important as the 10 year) has importance on the mortgage rates as well. So 10 year and 30 year treasuries-bonds are what determines the mortgage rates. In just 2 days 30 year mortgage rates went up from 4.75% to now 5.25-5.5%. Many of those who were getting refinancing just got kicked out of their loan application ...now unable to qualify for the loan.

Not only are long term treasury and bond rates heading higher, but so are the short term ones. This is highly problematic for the fed, treasury and the fiat dollar. Take a look at the different treasury rates:

6 MONTH TREASURY

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1 YEAR TREASURY

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2 YEAR TREASURY

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10 YEAR TREASURY

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30 YEAR BOND

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If you look at the shorter treasuries (6 month, 1 yr, 2yr) you will notice that on Friday last week they just went off the charts. Treasuries don't move in this fashion. Furthermore, the longer treasuries and bonds are not moving up as fast but are still heading higher as the stock market heads lower or stays the same. Today, even though the stock market was down most of the day, most of the treasury rates went higher.

Bob Chapman who is on the discount gold & silver trading show on mon-wed-fri, stated that the govt is losing control of the treasury markets. The treasury market is many times larger than the stock market. If you have not listened to his Friday show on June 5th, here is the link:

BOB CHAPMAN FRIDAY JUNE 5:

http://libertyarchives.com/farlive/FS2_FRI.MP3

BOB CHAPMAN TODAY JUNE 8:

http://libertyarchives.com/farlive/FS2_MON.MP3

Folks, we are coming to a significant dislocation in the markets. Within the next 2-4 months the whole sha-bang could come to an end...and that is the US dollar, and us treasury markets.

Furthermore, the bric countries are having a meeting on June 16 to discuss global markets:

BRIC countries (Brazil, Russia, India and China): A new global order emerging!

Quote:
On June 16, at Brazil’s urging, BRIC leaders will meet in Russia to discuss an ambitious agenda: overhauling the international financial system, enlarging the United Nations Security Council and dumping the dollar as the world’s reserve currency.
http://ceoworld.biz/ceo/2009/06/08/b...rder-emerging/

It’s only a matter of time folks before gold and silver take off, too many nails against the US dollar and treasury markets.

I will show in my next post the real reason that silver and gold got clobbered last year. Remember this....it was on July 15. That is the key...it won't happen again this year. No more bullets left.

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Looking forward to the follow up post Steve, thank you!

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