Might have a bit more pain if one is hoping for growth in US = inflation. The Feds don't think there is immediate need to raise the rates even though the data coming out are encouraging. They are just hoping that the economy can stand up without any more baby sitting QE. The discussion here is basically that the QE is not finding its way to stoke growth, just window dressing between the Feds and the big banks and spill over to the stockmarket. Similar to the Chinese stimulus and real estate markets.
My question is if and when normality comes back to the economy ie. normal growth without these artificial stimulus, what is the Feds going to do with the TB portfolio sitting on the balance sheet? That would be the time when the bond yields will spike or rally indicating a precursor to a normal Feds fund rate. I would think that is the time the Feds will reduce their TB exposure.
Interesting to note that Timber reckons the Feds are not a money making enterprise. So why the need to be a private entity and a secret share holder base that no one know who they are. Ditto the BOE. If ever you want the concept that money grows on trees then look no further than the Feds/BOE printing press.
You can be sure that the US will do its utmost to keep the world reserve currency profile and if they need to go to war politically or physically they will. Ditto the petrol $$ transactions. They will destroy anyone thinking of swapping to other denominated currency transaction namely Iran and maybe Russia. I would not be surprise this is done under the guise of the current Nuclear talk, similar to Iraq's weapons of mass destruction but somehow they could get away with the blatant obvious!
Anyway I will use the current "collapse" in the gold price as a good accumulating opportunity in high quality gold stocks. Good luck to those still holding. Remember March 2009? Wouldn't have thought the market worldwide could picked itself up in the darkest of gloom.
