Jubilee Prosperity

If all this is not enough to get our attention, T Bills are now targeting 4.19%.

http://stockcharts.com/charts/gallery.html?$IRX

4.19%?!

You think maybe the Fed and Treasury Boyz were bluffing when they said the Discount Rate and Reserve hikes were not really tightening?

Or is the 1.5% T Bill a feint?

We have to admit we were at first a little confused, because Big4 were short Bonds and Dollars, but long Fed Funds.

So a quick check of Fed Funds finds in fact, gosh darnnit, if their 15 basis point ineffective irates haven’t also run up across the board from one to six months to 37.5 basis points last Friday:

http://www.newyorkfed.org/charts/ff/

And those boyz and girrrlz said they were loose.

So what are we to make of all this?

Are the Big Boyz defending a run against the Dollar or even Bonds?

If so, we wait until we see Big4 stop shorting the metals so we can go long B, D or G again.

We may have a long wait.

We are not going to betray subscribers and reveal where Big4 just went long, but we are beginning to see the Big Market Picture here folks, and it ain’t purty for Uncle Sam’s bonds, dollars or metals right now.

It has taken a lot of patience and trailing stop losses, but the glass darkly is beginning to clear.

Big4 are still long low Fed Funds, with an ineffective rate of 15 basis points, while tenfold higher T Bill rates may be attempting to keep Agencies, Banks, Corps and maybe even the Fed and Treasury solvent.

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This entry was posted on Tuesday, March 9th, 2010 at 7:12 pm and is filed under Money doctor and Counselor. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.