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Richard's Remarks

 

Below are the only two charts you need to be familiar with. The first is the benchmark 10 Year Treasury note, and it's telling you and I and Ben Bernanke that the bull market in bonds is over -- and that interest rates are heading higher for probably years into the future.

 

The second chart is the yield on the 10 Year T note. From a little over 1.2% a year ago, the yield on this bond is now pushing 2.5%. This means that the interest rate on everything from the national debt to auto loans to credit cards is pushing higher. It's putting a painful squeeze on the entire US economy. And it's basically deflationary.

 

What can the Fed do about it? Ironically, the only thing the Fed can do is increase its QE in an effort to lift bonds higher, and in doing so, push interest rates down (as bonds rise, ... Log in or subscribe to continue reading.


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