U.S. TREASURY BOND ALERT: http://feeds.feedburner.com/blogspot/hMcSw
My website blog has already given fair warning that something big is coming up with the transfer of the May G-8 meeting in Chicago suddenly being transferred not to another city, but to Camp David. Loose lips sink ships.
China, Russia, and other nations have been flying out of their US Treasury Bond (UST) holdings like quail being flushed from a covey, and now the weekly CFTC commodity position report indicates that all the big hedge funds have been joining the chorus.
At the same time, the Federal Reserve Bank has been buying and now holds over 2 trillion dollars in U.S. Bonds and growing being the buyer of last resort, which they cover with only $50 billion in reserves. That’s leverage of nearly 50 to 1 and that’s insane.
Bloomberg News, one of the 5 media giants that filters 90% of the information most Americans rely upon is doing their propaganda duty by reporting the Saudi’s are buying UST’s hand over fist with all their high priced oil profits; but they have to, it’s in their contract for American military protection they signed with Nixon back in the 1970’s after Nixon Shock. If you don’t know what Nixon Shock was, you didn’t read my book.
The bottom line is that if you are holding UST as part of your retirement strategy, you’re screwed unless you move into something else like high quality corporate bonds. The simple truth is, the 80 year U.S. Treasury Bond backed world of trade is about to come to an end. It’s like a game of musical chairs as each stop finds one last chair to sit in until they’re all gone, only there are no winners. If you’re caught holding, you’re going to be a loser.
Where do you think the money has been coming from feeding the stock market climb?
That’s right, out of the bond pit.
What’s in your wallet (retirement account)?
So what are you to do?
Wall Street has been running up all the dividend-bearing stocks so you’re a little late there, but there’s always something coming up if you look. High quality corporate bonds are a route, but like most things, they are dominated in dollars and that is a risk unto itself. But what you are looking for is a safe haven and high quality bonds will do.
Gold is forming the right shoulder of an inverted head & shoulders formation and should be good for one more down move to as low as $1550 intraday, which would be one hell of a buy. This technical formation of gold reads $2200, which is the upper trend line of its channel that goes back to 2008. Ideally, what you are looking for is an income based investment-paying dividend and as a back up, something that is going to float with the dollar, and that means a commodity, and that generally translates into gold, silver, platinum, or some other precious metal (PM).
In the mix, if you’re wondering if America is going to war, the answer is that it has to in order to protect the dollar as the world currency. The problem is that going to war virtually finishes destroying the dollar. This is what makes Ron Paul seem so sane to so many people, as his positions of a balanced budget and ending America’s incessant wars of both Republicans and Democrats is the only way out of this…. looming disaster.
You think 2008 was bad? Tighten your belt then, we’re all going for a ride.
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