Could the bond market be signaling it is backing off?
*Dow Theory Letters, by Richard Russell, April 13, 2009
“The bond market may be ‘backing off’ for fear of rising inflation. Fed Chief Ben Bernanke has embarked on an all-out policy of ‘print and spend.’ The government is creating trillions of Federal Reserve Notes in a massive effort to support a debt-laden economy. Today a trillion is the new billion. The sheer amount of fiat money that is being created is frightening many of our creditors, such as China and Germany. Frightening them to the point where the talk is of a ‘new world reserve currency.’ The new currency will be a basket of currencies including the yuan, the euro, the dollar and gold, and it will be run by the IMF. As Bernanke goes wild in printing, our creditors become increasingly worried about the dollar as a store of value.”
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