MSM Setting the Stage for 'Surprises' of 2012

The following article reveals the elements right now being set in motion for the “Great Deception of 2012” with the herding of the “Sheeple” in the bond markets into completely insane investments.   

The quite dramatic MSM PORE of the ‘trumped up’ Euro Crisis (which is no Crisis, since all the BbBDBB’s will be miraculously transformed into BDST’s in the Summer/Fall of 2012; See our Blogs of 11/18, 21, 28, 12/9 & 1/4/12 & 1/11/12) is now having the grand effect of providing the much-needed liquidity to the US Treasury market. 

In effect, by herding worldwide bond investors into the US Treasuries, the further dropping of US interest rates is wondrously effected.  That in turn will set the stage for the ‘phony’ housing and RE recovery that will be seen in the winter of 2012/13 and is necessary to give emotional fuel to the phony stock market rallies of late 2012 and early 2013.

All the pieces are coming into play as if by magic. Which in fact they are.  It’s just that no one quite knows who are the magicians.

At any rate, will you and your company be ready for the LAST buying-surge of the DCBF’s before they and all the world are swept by the second of the three Super Tsunami ”Kondratieff” Long-‘Waves to follow?

Treasury Yields Drop to Year Low on Europe

Bloomberg; By Susanne Walker and Cordell Eddings - Jan 14, 2012 12:00 AM ET

“Treasuries rose, pushing yields to the lowest levels this year, as France was stripped of its top credit rating and talks to restructure Greek’s debt stalled, boosting demand for the safety of U.S. government debt.

The yield on the benchmark 10-year note touched the lowest level since Dec. 20 yesterday and the Treasury drew record demand at three- and 10-year note auctions this week. A model created by economists at the Federal Reserve that includes expectations for interest rates, growth and inflation indicates 10-year notes are the most overvalued on record.

“The story is still about mostly what’s going on in Europe,” said Jason Rogan, director of U.S. government trading at Guggenheim Partners LLC, a New York-based brokerage for institutional investors. “You still have nervousness and that’s bringing a good flight to quality trade here in the states.”

The benchmark 10-year note yield dropped nine basis points, or 0.09 percentage point for the week, to 1.87 percent yesterday in New York…The so-called term premium model reached a record negative 0.7 percent yesterday, compared with the average of positive 0.60 percent the past decade. The previous record was negative 0.67 percent reached Sept. 22. A negative reading indicates investors are willing to accept yields below what’s considered fair value.