The BOND IMPLOSION Has Officially BEGUN - Bond Bubble is about to Burst

MAX KEISER & ALEX JONES talk about the IMPLODING BOND MARKET
The BOND IMPLOSION Has Officially BEGUN - Bond Bubble is about to Burst



Federal Reserve Chairman Ben Bernanke is on the way out the door, but the consequences of the bond bubble that he has helped to create will stay with us for a very, very long time. During Bernanke's tenure, interest rates on U.S. Treasuries have fallen to record lows. This has enabled the U.S. government to pile up an extraordinary amount of debt. During his tenure we have also seen mortgage rates fall to record lows. All of this has helped to spur economic activity in the short-term, but what happens when interest rates start going back to normal? If the average rate of interest on U.S. government debt rises to just 6 percent, the U.S. government will suddenly be paying out a trillion dollars a year just in interest on the national debt. And remember, there have been times in the past when the average rate of interest on U.S. government debt has been much higher than that. In addition, when the U.S. government starts having to pay more to borrow money so will everyone else. What will that do to home sales and car sales? And of course we all remember what happened to adjustable rate mortgages when interest rates started to rise just prior to the last recession. We have gotten ourselves into a position where the U.S. economy simply cannot afford for interest rates to go up. We have become addicted to the cheap money made available by a grossly distorted financial system, and we have Ben Bernanke to thank for that. The Federal Reserve is at the very heart of the economic problems that we are facing in America, and this time is certainly no exception.

This week Barack Obama publicly praised Ben Bernanke and stated that Bernanke has "already stayed a lot longer than he wanted" as Chairman of the Federal Reserve. Bernanke's term ends on January 31st, but many observers believe that he could leave even sooner than that. Bernanke appears to be tired of the job and eager to move on.

So who would replace him? Well, the mainstream media is making it sound like the appointment of Janet Yellen is already a forgone conclusion. She would be the first woman ever to chair the Federal Reserve, and her philosophy is that a little bit of inflation is good for an economy. It seems likely that she would continue to take us down the path that Bernanke has taken us.

But is it a fundamentally sound path? Keeping interest rates pressed to the floor and wildly printing money may be producing some positive results in the short-term, but the crazy bubble that this is creating will burst at some point. In fact, the director of financial stability for the Bank of England, Andy Haldane, recently admitted that the central bankers have "intentionally blown the biggest government bond bubble in history" and he warned about what might happen once it ends...
bonds "bond market" finance "stock market" evil globalist government trading "online trading" yield "bond yield" bank banking bubble implode manipulation "max keiser" prediction sell "sell off" rally "bull market" "interest rate" mortgage debt savings "savings account" economy u.s. "united states" "federal reserve" currency "fiat currency" "sell bonds" "buy bonds" event money cash oil "oil trading" gold "gold bullion" "gold trading" expert success power elite mafia media news 2013 america american economic future peter schift gerald celente trends trend jim rogers qe unlimed qe infinity paper money corruption corrupt soros gdp growth obama fed bush jp morgan chase silver bullion price crash Posted below is a chart that demonstrates how interest rates on 10-year U.S. Treasury bonds have fallen over the last several decades. This has helped to fuel the false prosperity that we have been enjoying, but there is no way that the U.S. government should have been able to borrow money so cheaply. This bubble that we are living in now is setting the stage for a very, very painful adjustment... Gold GOFO rates turn negative for first time since Lehman

Zero Hedge offers evidence of unusual strain in the gold market, the most strain in five years. Zero Hedge speculates that the strain may arise from:
"-- An ETF-induced repricing of paper and physical gold.
"-- Ongoing deliverable concerns and/or shortages involving one (JPM) or more Comex gold members.
"-- Liquidations in the paper gold market.
"-- A shortage of physical gold for a non-bullion bank market participant.
"-- A major fund unwinding a futures pair trade involving at least one gold leasing leg.
"-- An ongoing bullion bank failure with or without an associated allocated gold bank "run."

Zero Hedge's commentary is headlined "A Historic Inversion: Gold GOFO Rates Turn Negative for the First Time Since Lehman" and it's posted here: