But interest rates are not rising in spite of QE, instead, since May they have been rising because of QE. Interest rates are just way too low and do not offset all of the risks associated with holding Treasury paper. Therefore, Treasury paper is being sold, meaning that its supply is greater than the demand for this paper.
The reason why all of this so incredibly important is that everything is now in place for another crisis as we approach the February debt ceiling limit. As a consequence, it is extremely critical that investors understand that they should absolutely not be holding dollars or Treasury paper. They are incredibly overvalued and therefore they will be the ultimate losers here. Physical gold and silver are the place to be, and can continue to be picked up at prices that reflect severe undervaluation.
- James Turk via King World News: