BERNANKE'S "WARNING" TO CONGRESS WAS LIKE SOMEONE FARTING AT THE DINNER TABLE...
BUT, AT LEAST HE'S "ON THE RECORD" LIKE GREENSPAN WAS FOR GOOD MACRO ECONOMIC POLICY...
AND THERE WAS SOME TALK OF THE BOND CONUNDRUM...WHICH EVERYONE STILL THINKS IT'S A MYSTERY...
BUT IF YOU THINK ABOUT IT...MONEY HAS BEEN "PRINTED" ONLY FOR THE BUSINESS ELITES...AND NOT FOR THE GENERAL ECONOMY FOR DECADES NOW...
IN EFFECT, CASH HAS BEEN "TRAPPED" INSIDE THE ELITES...WHO "DON'T CAUSE" THE BAD KIND OF INFLATION...BECAUSE THEY ONLY "INVEST" IN ASSETS... AND HOPEFULLY IN "GOOD" GOVERNMENT BONDS...NOT IN "EVIL" GOLD OR OIL...
OF COURSE WE'VE HAD MASSIVE ASSET INFLATION OUT THE WAZOO FOR 20 YEARS!
UNLIKE THOSE WORKING CLASS STIFFS WHO SPEND ALL THEIR EARNINGS IN STORES...THUS DRIVING UP PRICES AT THE RETAIL LEVEL...THEREBY CAUSING THE SO CALLED "BAD INFLATION."
BUT THIS "TRAPPED CASH" HAS NOWHERE TO GO NOWADAYS; WITH THE WORKING CLASSES BECOMING INCREASINGLY IMPOVERISHED AND ENDEBTED...
SO THE ELITES DUTIFULLY PUT IT INTO BONDS...THUS DRIVING DOWN RATES... NO CONUNDRUM AT ALL! THE RICH ARE MERELY SHOWING THEIR APPRECIATION TO THE CENTRAL BANKS WHO HAVE ENRICHED THEM!
NOW, IF THE TRAPPED CASH WENT INTO OIL OR GOLD...AS AN ASSET CLASS...THAT WOULD BE VERY BAD FOR THE "PAPER ASSET RICH" ELITES...
SO THEY "AGREE" TO BASH GOLD...AND ALAS, NOW APPARENTLY OIL...
JUST TO KEEP "THE SYSTEM" GOING...
SO WHENEVER YOU THINK ABOUT BOND YIELDS...?
JUST THINK ABOUT "TRAPPED LIQUIDITY" IN THE HANDS OF THE ECONOMIC ELITES...AND YOU'LL HAVE A HANDLE ON THE "CONUNDRUM" IN BONDS.
