US Dollar & Bonds are Toast

The massive redemptions in US based funds have pulled the hot money from international markets back to the US. As a result, the dollar has strengthened, but this can’t last for too long. As we have called for two years now, US treasury bonds are beyond junk, and printing of at least $2.6 trillion in “bail out” money is only adding fuel to the fire. Certainly, the deleveraging of the system is helping keep inflation low, but the credit quality of treasuries is “C.” As we belabor this point once again, it all points to the fundamentals: energy (clean energy in particular), water, food based commodities, and gold/silver.