by Andy Hoffman, MilesFranklin.com:
Yesterday, I wrote of how the largest “pink elephant” in financial markets HISTORY; to date, all but ignored by the MSM – is the fact the 30-year bull market in U.S. Treasury bonds is decidedly OVER. Worse yet, the current bond bubble was inflated by a “Fed gone wild” to unprecedented levels of overvaluation; and thus, as they say, “the bigger they come, the harder they fall.”
No matter what metric is utilized to measure Treasury bond valuations – be it money supply growth (reported and unreported); inflation (reported versus real); debt; secular economic trends; Congressional dysfunction, geopolitical tension; or otherwise – the paradox of record-low interest rates sticks out like a sore thumb. At this point, even the most disingenuine, ignorant, and “patriotic” must admit that ONLY Federal Reserve “QE” buying has kept rates this low; and frankly, that only increased QE even has a chance at preventing a “disorderly” collapse.
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