SUNDAY MORNING POST

This is one such essay I suggest again you make sure you read
Doug Noland link here to complete Credit Bubble Report

Here is a small excerpt from "Half a Paradigm"


"Each month, the U.S. Credit system and economy become only more vulnerable to a rise in yields (mortgage and Treasury borrowing costs, in particular). Imagine the U.S. housing market in an environment of much higher mortgage rates and then ponder the scope of the Fannie/Freddie/FHLB/FHA bailouts in the event of a spike in yields. Picture the dilemma faced by Treasury if its borrowing costs jump significantly. How about the fiscal position of state and local governments? Could our frail banking system handle a surprise rise in rates? And imagine the corner policymakers would find themselves boxed into when the Fed loses control over market yields.

It is not clear to me whether it will unfold over months or years. But I do expect a more complete Paradigm shift to foster waning influence of the Fed over global market yields commensurate with fading U.S. economic dominance. Unless global reflationary forces dissipate, this implies a future adjustment period for U.S. interest-rate and risk asset markets. And when the Fed eventually loses command over market yields, the risks associated with today’s policy course will likely manifest into a very problematic financial and economic crisis. The Fed should neither peg interest rates nor telegraph the future course of interest rate manipulations – especially at near zero rates. And the Fed can today ignore global reflationary dynamics at our – and our currency’s - future peril. It’s amazing the lessons somehow not learned. "

Our future is skating on thin ice, and it's amazing to me those in control seem oblivious or don't care about our peralous situation.

YES, imagine what would happen, IF US LONG INTEREST RATES BEGAN TO RISE AND THE FED HAS LOST ALL CONTROL OF THAT DYNAMIC.

They have settled for the destruction of our currency, inflating other world economies, bailing out the banks instead of Americans, status quo over needed change and overhaul.

Under the current administration and FED control, I FEAR there is nothing we can do and the ultimate SQUEEZE play and CRISIS is LOOMING around the corner, and it may manifest itself as a breakout in long term interest rates of which surely would result in a panic and crisis and spell the END to US dominance in the worlds markets and possibly the loss of Reserve Currency status.

If that's acceptable to you, sit by and watch it happen.

KRAP and now this Healthcare bill passed
Duratek