US Treasury Bonds,The Godfather Of All Bubbles


…The 30-plus-year-old bull market in US bonds, notes and bills may well be the most destructive man-made “Bubble” in all of recorded history.  It will sooner or later implode because it is unsound to the core.  A puncturing of the bubble may start when any of several huge holders sells.  Its implosion will trigger the sale of other overpriced corporate, municipal and foreign bonds, and the dollar itself may well be replaced as the world reserve currency.  The US bond bubble is the Godfather because it is so large that no other investment market can absorb the mass exodus which will come from it.  It is logical that those who have worked so deliberately to create this debt bubble will fight even harder to prevent its collapse.  When it implodes, it will probably bring down lesser bubbles and excesses, including the function of the dollar as a world exchange currency.

Read the full article here.


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