Graphs courtesy of StockCharts.com
Notice that the 200 day moving average has fallen below the 50 day moving average on 5 and 10 year US treasuries. This is know as the Death Cross as it is sign of an unhealthy asset.
Notice the gap is now closing on 2 year treasuries and the 50 day m.a. will likely cross within four weeks at the current rate.
The Chinese are trading US dollars and bonds of falling value for materials with tangible value like commodities and stockpiling them. They know it is only a matter of time before the US dollar loses more value. Soon the bond market will force interest rates to rise, causing mortgage rates to rise and crush the green shoots.
Check out trade and industrial output (from the site voxeu.org).
Quite a parallel to the 1930s!
Still think recovery is just around the corner?
Its a WWW Recession with repeated ups and downs.
Perhaps it is time increase personal savings.Maybe it is time to buy some gold as a hedge.
Is it time to stop denying there is a problem?
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