Tuesday, March 20, 2012

HOT: Bernanke in Panic

Lately in the EPJ Daily Alert, I have been chronicling the climb in interest rates and wrote that Bernanke's promise to keep rates low until late-2014 was absurd. Last week Thursday I wrote in the Alert:

U.S. Treasury securities overnight fell for a seventh straight trading session, the longest run of declines since June 2006. The 10-year Treasury yield climbed three basis points to 2.30 percent. Again, I emphasize this climb in rates is occurring while Bernanke is conducting Operation Twist, which is supposed to put downward pressure on long-term rates. 
The bond market appears to be in the early stages of a very long decline, perhaps years long. Avoid bonds at all costs. Aggressive traders should consider shorting bonds across the yield curve.Everything is going to climb, short-term rates and long-term rates.These will not be minor moves. It will catch most by surprise.
This morning CNBC is reporting that  Fed Chairman Bernanke tolds CNBC: We're Watching Recent Rise in Interest Rates.

Bernanke is likely paving the way for an interest rate hike down the road. He must know price-inflation is creeping up on him and the climb in rates, despite his Operation Twist, is scaring the hell out of him. He's a rat in a cage, whatever he does print or not print, it is going to be a mess. If he continues to print, the price inflation is going to get out of control. If he stops printing, he crashes the manipulated boom economy.


  1. Time to dble down on TMV.

  2. This comment has been removed by the author.

  3. The puny politicians are about to have the rug pulled out from under them while Ron Paul will continue to stand tall and strong and wise in the face of the chaos.

    1. Paul is correct, too many voters don't want to face the truth.

  4. Whatever anyone hopes for or does, so long as force / fraud are systematically wielded against the productive, DOOM is inevitable:


    natural law SMITES all who dare oppose, the bigger they are, the harder they fall...

  5. Operation twist (the truth) will surely be followed by operation spin (the truth) and ultimately be punctuated by operation face plant. BYE BYE BOND BUBBLE.

  6. http://www.infowars.com/why-did-abc-tv-post-illinois-gop-primary-results-24-hours-early/

  7. I'll short your long position in TMV. Please continue to put your money in levered ETF's. Free money for me!