JIM SINCLAIR: TREASURY BOND BUBBLE WILL NOT POP, FED WILL SIMPLY INCREASE QE

silverdoctors.com / By The Doc / February 4, 2013

Jim Sinclair has sent an email alert to subscribers tonight regarding the Treasury bond bubble. While many in the precious metals community believe that the T bond bubble will spectacularly bust and collapse in the near future due to the US’ unsustainable debt,Sinclair states that the Treasury bond market cannot collapse as long as the Fed continues purchasing US debt via QE to infinity. 

Sinclair states that quantitative easing will continue to increase in size by the Fed to meet the size of US bond offerings, and that US interest rates will not rise substantially unless the Fed ceases its QE program.

Essentially Sinclair is stating that interest rates will continue to manipulated at an artificially low level by uneconomic buying of T-bonds by the Federal reserve governor typing on a keyboard, and that the pace of QE will keep pace with the pace of the US budget defecit/ funding gap, until which point the US dollar faces a collapse in the confidence of the currency itself.

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