RE:RE:☆ FINANCIAL APOCALYPSE IS UPON US ☆well I guess that about sums it up.
I like to paint with a wide brush too and make broad strokes. So let’s see, the economy sucks. The gov has to support it with funding. They fund by issuing bonds, lots of bonds. Perhaps too many bonds and the bond buyers go on strike. Bonds left unsold, they flood the mkt and then the price of the bonds goes down. Well that means that interest rates must go up when the price of the bonds goes down. There's an inverse relationship. Price of bond goes up interest rate goes down, price of bonds goes down interest rate goes up. Interest rate goes up, price of gold goes down, even though the paper bonds are probably worthless, gold still goes down. However gold never goes to zero, paper goes to zero. I think in Japan, the gov there buys all the bonds and now they buy most of the stock too, crazy. USA gov buys lots of bonds but not all yet, seems there are forced institutional buyers of bonds but I think they're a bit stand offish lately, hence price of bond goes down etc, etc so on and so on.