Interest Rates Dropping

Deflation continues, and the masses who wrongly fear hyperinflation cannot ignore the evidence. 

Notes on 2-year U.S. bonds are now at the lowest yield of their 234-year history, below half a percent. 

Back in March we warned that a major move in interest rates was imminent, and shortly thereafter the move began.  We used TLT and TBT to make our illustrations and now we find these ETF's breaking to new highs and lows respectively. 

Inflation will come at some point, and so too a turn in interest rates, and we'll be ready to capitalize on it, perhaps buying TBT in the mid-$20's.  For now know that this is bearish for the equities markets and so too for gold.  The U.S. dollar should be the benficiary of a continued decline in interest rates.