This Will Destroy The Financial System As We Know It
“We
are finally putting in place a bottom in gold and silver. This process
has been really ugly, and it’s gone beyond any rational action in terms
of price. People are finally beginning to acknowledge that the gold
and silver miners, particularly pure silver miners, are operating way
below their cost level.
This
situation is totally unsustainable. But having said that, the thing I
am really focused on is the bond market. This is the one thing that
will really destroy the financial system as we know it....
“It’s interesting that every time we get a positive
economic number the bond market shivers. Similarly, when the Fed talks
about tapering the bond market also tanks. So technically the bond
market is starting to look weaker and weaker. The reality is that if
the Fed wasn’t in there supporting the bond market, the bond market
would plunge and interest rates would rise.
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