The Bailout Ocean

See the above link to a Bloomberg article:

“To everyone’s dismay, we believe some of Grandpa Ben’s predictions are playing out,” Greenlight said in the letter, a copy of which was obtained by Bloomberg News. “The size of the Fed’s balance sheet is exploding, and the currency is being debased.”

How very true. When hedge funds start buying bullion....that's got to be the biggest buy signal for gold I think I have seen. It is an astute article and another reference point to explain why the pundits forecasting long term low interest rates are dead wrong. For future reference

• the US bond market will implode


• the US dollar will fall precipitously


• US interest rates will rise dramatically in a very short period of time


• global interest rates, to various extents, will follow
  

This is an inexorable consequence of current actions, as the United States, already running unsustainable deficits, pushes its currency over the brink.