Stay Away From Bond Market!

I keep hearing how high the bond market is flying. This is typical of a top. It makes the news now. But the time to buy the bonds was long ago when they were crushed and nobody wanted to hear about them.

Bonds are a bubble! US dollar is the place to be for the next 1-2 years. Not stocks. Not bonds. US dollar rally is real. 2008 was just the warm up in this deflationary crash. FED printed a trillion and inflation is nowhere to be seen! Do you know why? Let me explain.
Our money supply is NOT printed dollars. It is bank credit. We printed 2 trillion dollars. But we borrowed 50 to 300 trillion over many decades. This debt becomes our money supply. And it needs to be paid back with interest! Banks create money when we borrow:

http://www.tradingstocks.net/html/banks_create_money.html

At a given time principal+ interest does not exist. It will only exist with more borrowing, so that people can earn and pay it back. When the borrowing slows down, it becomes hard to find US dollars to pay back the debt. That is why when the economy goes down, US dollar rallies and everything else falls, including Gold.

We are at the early stages of a deflationary crash. The debt levels in the society are too high. This is why starting with 2006 housing top, economy started to come down. We ran out of borrowers! Thus we were not able to inflate the money supply as needed!

http://www.tradingstocks.net/html/inflation_deflation_credit_bub.html

Sub-prime was intentional. No 20% down. Uncle sam wants you to borrow the full amount! Liar loans were OK, as long as you borrowed, all was fair! And then the music stopped. Now they pay you 8K home buyer credit so that you may borrow!

http://www.tradingstocks.net/html/housing_market_bubble_bust_cyc.html

The crash will go into history books. We are in Kondratieff Winter. The debt is the problem. Debt is denominated in US dollars, not Gold! To pay debt, people must find US dollars. Gold is not in a bull market either:

http://www.tradingstocks.net/html/gold_bull_or_bubble.html

US state and local governments are going bust. They are cutting jobs. Banks are kept alive at tax payer expense. Fannie, Freddie loosing billions, may reach a trillion, just so that cheap mortgage is available so that banks can sell their over prices homes to the home buyers. Stay away from bonds. Bonds are a bubble.

http://www.tradingstocks.net/html/investors_jump_into_fire.html

This is going to be a single dip depression. Stock market has head and shoulders pattern. 2000 is left shoulder, 2007 is head, 2010 is right shoulder. Stocks can go down lower than you can imagine. Get out while you can. Nothing has been fixed. We have borrowed and spent on consumer debt. We are not increasing our productive capacity or competitive edge. Borrowing from China to consume more Chinese products is not going to be a recovery. This is a dead end.

http://www.tradingstocks.net/html/latest_opinion.html

Cash is the place to be for a while. Soon your USD will buy more stocks, more homes, more oil, more gold. Deflationary crash is coming.