If Obama is going to cut taxes and boost assistance, they have to borrow to do it-large tranches of new Treasury notes are being pushed into the market and prices have begun to fall. Hes spending on the credit card. There is an uprecedented 3 trillion bucks sitting in those notes, shivering in fear at micro returns. As the Govt borrows heavily, the supply will be higher, while Asian owners look likely to liquidate a proportion to fund their own spending at home. eg Japan has mega problems just now, and the are now no new petrodollars flowing in. There comes a point at which your now minimal interest income is swallowed up by your capital losses and you go into the red. You start to lose money. When the bond bubble bursts, it will come as a result of supply and demand. Supply is now increasing fast and demand is slowing. Its not if the bond bubble is going to burst. Its just when. (Usually it happens whenever you take your eye off the ball) So where are you going to put your money? In an American bank? Will it still be there next month? Will withdrawals be frozen? The physical market for gold is as tight as a drum. Try to buy a gold coin. The SA mint cant keep up. Gold will never go broke.
