Between Monday and Thursday US Treasury Notes and Bonds went up 4 days in a row (end of upward trend signals) and then on Friday made big outside key reversal days.
The US Treasury 30 Bond
The US Treasury 10 Year Note
This might be signaling the end of increased purchases of US Treasury debt by the rest of the world, particularly central banks. We will have to watch prices around the world in all sectors to see were all the USD is now going to go to since the world is currently awash in USD and since the Bush administration of the US government does not appear to have any intentions of decreasing the government's budget deficit and the country's current account and trade account deficits. Or in other words the US Treasury and the Fed are going to do what ever it takes to create enough USD to send out of the US to maintain the US's current and trade account deficits, thus the phony unearned living standard within the US, which ultimately will come to an awful end.
What the US government will have to do is have the Treasury write I.O.U.s and send them over to the Fed. The Fed places them on their books as an asset which increases the Fed's reserves thus making it able to create more USD which it loans back to the US Treasury. Quite the racket.
If the rest of the world along with the domestic economy will not borrow more USD so that more USD can be created, then the US Treasury will do the borrowing. For Americans living standard to be maintained the current and trade accounts must keep expanding. More debt has to be taken on by some entity. No new debt taken on means no new USD can be created. So here comes bigger US government spending.
And you thought it was big already. Wait till you see hyperinflation big.
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