TNX Chart: Specter of Rising Rates

By: Jim Willie CB, GoldenJackass.com
-- Posted Sunday, 26 January 2014 |
We are at the doorstep of a major USTreasury Bond breakdown. The TNX (10-year bond yield) is at the
3.0% doorstep, as 3.5% looms very likely in the coming months. A
horrible threat of a 3.7% target is presented in the chart. A rising
trend is seen in many characteristics that cannot be easily dimissed.
The following graphic is an extremely powerful chart, thus the center
piece of the article. If and when the breakout comes, it will make the
Taper Talk backfire seem rather insignificant, as a gathering storm will
hit like a financial hurricane on every continent. The Jackass is on
record with a forecast of 3.5%, which remains in place. One must be
patient to watch it unfold, since it can take months to unfold and to
manifest itself. That is far more time than the nitwits who are quick to
label it a wrong forecast call. But then again they are are loud
unimpressive dullards who litter the audience, taking up valuable space.
The USDollar control room at the infested USDept Treasury and the
Banker Crime Syndicate at the US Fed Reserve will defend the 3.0% level
to the death. A break above 3.0% toward 3.5% would bring about at least
one big bank failure, force deadly dominoes of destruction, and reveal
some more London Whale-type sightings with catastrophic losses. A very
reliable reversal pattern is evident, the Cup & Handle formation,
which indicates a breakout lift potential 1.0% higher. In my own past
experience, the reversal pattern has been correct at least 80% of the
time, but the timing of the breakout is always a challenge. The
timeframe could be mid to late 2014, but it will take a long time to
reach the indicated target level. Notice also the strong upward bias
(tilt) in the entire reversal pattern, a rare feature seen anywhere. It
means not only a reversal in progress, but a powerful one almost
impossible to halt, since many underlying dynamos behind the forces.
A
USDollar currency crisis eruption could send the 10-year USTreasury
Bond yield past 3.5% easily, then later toward the 4.0% level in a
sudden burst. My gut tells of the system and the maestros losing
control. It is not just the Gold market they are losing control, but the
nemesis to gold, the USTreasury Bonds. The global effect of QE to
Infinity and the fake Taper Talk, or trial balloon, has spooked the
entire world. The necessary hyper monetary inflation has been accepted
even though actual heresy. Its direct effect has been to undermine the
USDollar currency in a grand enduring debauchery chapter. Its direct
effect has been to lift the cost of food and energy, which strikes at
the heart of foreign government stability. Its direct effect has been to
motivate foreign parties to seek and to construct alternatives to the
USDollar in both trade and banking. Its direct effect has been to change
the perception of the US & UK leadership as criminal elements, who
exercise hegemony for predatory purposes. They wish to remain in power,
or as my friend UD says to retain stealing rights, so aptly.