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Should We Be Alarmed That The Biggest Bond Fund In The World Has Dumped All Of Their U.S. Treasury Bonds?

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Bill Gross, the manager of the biggest bond fund in the world, has forgotten more about bonds than most of us will ever learn. That is why the big move that PIMCO has just made is so unsettling.  At one time PIMCO held more U.S. government debt than any other bond fund on the globe, but now news has come out that they have gotten rid of all their U.S. government-related securities.  So should we be alarmed?  For months Gross has been warning that the bull market in bonds is coming to an end, and now it looks like he is putting his words into action.s  Gross has often publicly decried the rampant government spending that has been going on over the last several years, and apparently he has seen enough.  He is taking his ball and he is going home.  This really is a stunning move by PIMCO.  Gross must really believe that something fundamental has shifted.    Gross didn’t get to where he is today by being stupid.  But so far world financial markets are taking this news in stride.  Nobody seems all that alarmed that the largest bond fund in the world has dumped all of their U.S. Treasuries.  But with world financial markets in such a state of chaos right now, shouldn’t we all take note when one of the biggest players in the game makes such a bold move?

Gross believes that interest rates on U.S. Treasuries are way too low right now and that they will start going up when the Federal Reserve ends the current round of quantitative easing in June.  Gross has indicated that if interest rates on U.S. Treasuries go up high enough, PIMCO might get back in.

But if interest rates do start going up that is going to make servicing the monolithic U.S. national debt much more expensive, and that would not be good news for U.S. government finances.

But would the Federal Reserve really allow interest rates on U.S. Treasuries to go up substantially?  Wouldn’t they just step in at some point and start buying U.S. government debt again?


But the truth is that the Ponzi Scheme of the U.S. Treasury issuing bonds and the Federal Reserve buying them up cannot last forever as Gross noted in his March newsletter….

“Basically, the recent game plan is as simple as the Ohio State Buckeyes’ “three yards and a cloud of dust” in the 1960s. When applied to the Treasury market it translates to this: The Treasury issues bonds and the Fed buys them. What could be simpler, and who’s to worry? This Sammy Scheme as I’ve described it in recent Outlooks is as foolproof as Ponzi and Madoff until… until… well, until it isn’t.”

Gross also noted in his newsletter that the Federal Reserve is currently buying up about 70 percent of all new U.S. government debt.

So what is going to happen when that stops?

Nobody knows for certain, but it sure is going to be interesting to watch.

The market for U.S. Treasuries has not been working “normally” for quite some time now, and there is some legitimate doubt as to whether it will ever fully get back to “normal” again.

Meanwhile, the sovereign debt crisis in Europe continues to get even worse.

The yield on 10-year Portuguese bonds is now above 7 percent, the yield on 10-year Irish bonds is now above 9 percent and the yield on 10-year Greek bonds is now above 12 percent.

Most people expect European leaders to soon come to an agreement to add billions more to existing bailout funds, but there is no guarantee that is actually going to happen.

In fact, the Germans are making waves by insisting that the financially troubled nations in the EU must be willing to agree to limits on their future budget deficits.  A recent article on CNBC described the situation this way….

Before the Germans will agree to pump in extra cash from their taxpayers, backed by the French, they want each leader to agree to legislation at home that will limit the size of their future national deficits. The Greeks are already refusing point blank. Things may boil to the surface at an extraordinary summit on Friday.

So what if an agreement can’t be reached?

Could the dominoes in Europe start to fall?

Very few people actually want to see a wave of sovereign defaults in Europe, but the current situation cannot go on forever.  At some point the Germans are going to get sick and tired of bailing out other members of the EU.

The global addiction to debt is about to start having some very serious consequences.

For decades, most of the governments of the industrialized world have been running up debt as if it would never come back to haunt them.  Now the world is absolutely covered in red ink and everyone is looking for a way to solve the problem.

But there is not going to be a debt jubilee to come along and save everyone.  This debt bubble is either going to keep expanding or it is going to burst.

At one point, at least some of the debt-ridden nations will try to inflate their way out of debt by recklessly printing money.  To a certain extent that has already been going on.  But it will not work.  It will only cause a whole lot of inflation.

This is just more evidence that any economic system based on debt is destined to fall.  When we allowed a private central bank to start issuing debt-based currency in this country back in 1913 we set ourselves up to fail.  As I have written about previously, the Federal Reserve should never have been allowed to come into existence, and it should have been shut down by Congress long before now.

But now the United States is caught in the same debt trap that most of the other nations around the world are caught in.  The global addiction to debt is going to have some very, very serious consequences.  Instead of moving into a great time of peace and prosperity, everything is about to come falling apart.

Things could have been different.  Things did not have to turn out this way.  But here we are on the edge of one of the biggest financial disasters in human history and most Americans still don’t understand what is happening.

So what do you all think about all of this?  Please feel free to leave a comment with your opinion below….

  • DownWithLibs

    Like thay say: If you don’t know whats going on, just follow the money!

  • j

    Ponzi fiat printing, Ponzi lending… How do people think money gets into circulation? When theres plenty of cash, the economy is “good”, we can pay our bills. Then the banks stop lending so they can forclose on the same people they caused to lose their jobs.The game is rigged. Its the big con. End the Fed and the banks in their present form, Bankers only deserve to make minimum wage, along with the politicians and corporate executives

  • Phrygian cap, aka Michael2

    Economist John Maynard Keynes said, “Capitalism is the astounding belief that the wickedest of men will do the wickedest of things for the greatest good of everyone.”

    The blog moderator rather grimly expresses, “Things could have been different. Things did not have to turn out this way. But here we are on the edge of one of the biggest financial disasters in human history and most Americans still don’t understand what is happening.”

    For me, I see the possible and I emphasize, possible, coming wave of destruction and chaos as an opportunity to start anew. I emphasized possible above because with right leadership, by the right people, our society does not have to descend into riotous chaos. I believe enough understanding of the constitution remains that American’s will want to largely transition into a more appropriate form of political economy without large scale disruptions. I know or think at least that there will be dust ups here and there but I am hopeful.

    I definitely see that along with the collapse of economies in country after country, it is inevitable that the systems and the alleged ‘people’ who started and maintained them will collapse too.

    The global debt pandemic could turn out to be one of the best things to have ever happened to humanity. A virtual blessing in disguise because as these systems die off the parasites we played host to that created these sick economies, will die as well. They just do not know it yet!! They are too caught up in megalomaniacal hysteria, fancies of elitism and illusions bloodline supremacy to realize the writing is on the wall for them, just like it is for us.

  • Kevin

    The phrase; “Backed by the full faith and credit of the United States Government” does not give a prudent person a “Warm and Fuzzy” feeling.

  • Patriot One

    Its starting to look like the system will come apart by 1000 cuts. Austerity, Bonds, Gas, Oil, Real Estate, Food, Civil unrest what’s next?

    I’m sorry folks, but from my point of view the only good news is the MSM and Government Propaganda, oh lets not forget American idol and Dancing with the stars.

    I just can not understand how so many smart people, can be so stupid.

    Great article, but do you think you will ever see this in the MSM?

  • Peter E

    I wonder what price PIMCO might see as acceptable. Is 9-12% in the ball park? Having physical assets in hand seems increasingly the only think you can rely upon, and then the government could try to seize them! There is an old saying that if the US catches a cold then the rest of will catch it too… Very Worrying

  • Chaitanya

    I agree with you, pimco dumping us bonds is the best indicator that the fundamental problems in US are about to surface, however american are still not aware of the consequences of a economic collapse…..

  • PaulF

    I saw this on ZH today. Should would be alarmed? Perhaps, but more pertinently I’m considering selling my treasuries too.

  • Scott Johnson

    Very timely article. I wonder if it is too soon to say the world financial markets are taking it in stride. They may be just reacting slowly.

    I would suggest buying a copy of Iron City Blues as soon as possible.

  • Frank

    Follow the yellow brick road, follow the yellow brick road.
    Follow, follow, follow, follow, follow the yellow brick road!

  • Forget about fear, greed, or alarm and just look at the numbers.

    If the Federal Reserve stops buying US government debt, the following actions should be expected:

    (1) Massive benefit cuts on baby boomers in retirement.

    (2) Astronomical tax increases that leave the young with little incentive to work and save.

  • GrayFoxGreen

    Somebody is playing a “friendly little game of Old Maid” and real soon now the game will end.The “Goldie-Sakies screwU” Wall St. folks no doubt already have a date in mind.Plans are made,the rest of us won’t be told until they have started rowing their “lifeboats”as fast as possible(remember Titanic?).The Repocrats(both groups) with perhaps the possible exception of Ron Paul,have a pretty good idea as to the “Deadly Time” moment as well and have their “Golden Ticket”(thanks to the above) in hand and could care less about anyone else.
    Guess they all forget that God hears them in their Boardrooms,Stockrooms and secret places.How do you bribe the Creator of all?
    Should be worth the price of admission to see how this all works out.
    Best to All

  • William Lane

    So what do you propose that we investors do to survive the coming disaster? Sell T-Bonds short may not work as money will flee to T-Bonds. Buying gold may not work as commodities tumble down.

  • Davidm

    The Fed is buying 70% of new treasuries and Bernanke plans to stop QE2. Yea, right. If the fed stops buying, the party is over in an ugly way. Seems like a good bet that the printing will continue as will the stock market bubble until..until it doesn’t.

  • Mark McBee

    Marc Farber said “We are doomed.”

  • Bethany

    We’re Screwed. Get your year supply in order, grow a veggie garden, raise chickens, a goat and a sheep, cause no one will survive any other way.

  • The Beast

    Long live the Ponzi scheme!!!

  • Barnabe G.

    There is no doubt in my mind an economic collapse is coming because at this point there is no turning back. The U.S. is damned if they do and damned if they don’t. Big cuts in spending would bring down the economy which is not self-sustaining at this time; to continue spending the U.S. will need to borrow more and lenders will demand higher interest rates which will increase the borrowing costs of the government; if it does not raise interest rates the Fed and central banks will be the only buyers of U.S. treasuries and, as the U.S. monetizes its debt, exported inflation and the social unrest it fuels will drag down the economy while the dollar collapses.

  • D rumsfeld

    Quote ‘The Treasury issues bonds and the Fed buys them.’

    What happens when these Treasuries mature?

  • William

    There is no good way out. If the FED stops buying US debt, the economy collpases. If the FED continues to monetize the US debt, the dollar collapses. the USA is doomed either way. Thanks lots to the Smirking Chimp and war criminal Bush, who served up this nightmare.

  • roadrunner

    I was YEARS ahead of the game…even BEFORE PIMPCO, (yes, I spelled it that way on PURPOSE). I dont trust ANY of these ppl. I dumped my Series EE bonds when the US Gov. unilateraly switched the maturity date from 6 months to one year. I didn’t like that. Now I hear radio commercials about the little ppl buying municipal bonds, and saying dont fear…if those bonds are insured…you wont get clobbered.This comeing from a muni bond insurer. What clap-trap. Everybody with a brain should know that muni’s are the most vunerable right now. My suggestion. If you have any cash to invest, buy silver coin. And when I say silver coin…I mean American Silver Eagles, (when you can get them. I know the price is around 36.00 at the time I type this. And I know about the premieum over spot. I dont like this either, but thats how it is. I wouldn’t go hog ass wild buying though. I suggest buying , lets say 2 or 3 per month…if you have the money to do it. The price will go up and down. But remember this…I am saying this as a public service…I am NOT worried about the price of an Eagle NOW. I am targeted about what the price will be 2 or 3 years from now. Thats the important part. Think wisely.

  • MichaelR

    A few months back CNBS’s Erin Burnette said that 80% of treasuries were taken by the Fed. She dissapeared from the set for a couple of weeks after that. Their primary wall street bond dealers (private sector serogates) take what investers don’t. Some say the Treasury hasn’t made a legit bond sale in years. All markets are rigged from top to bottom.

  • impeachRonPaul

    We would be better off with one stable world currency. Get religion off the dollar.

  • Bill Gross is an big Insider player. He makes his money by working with the Fed. He is not making this move for the financial health of you and I.

  • Rob

    Prepae for the worst and hope for the best. Learn old time skills, and gain knowlege, learn how to collect seeds from heirloom seeds, learn canning, food dehydration, basic medical proceedures… did peoople survive 100 years ago.without electricity..perhaps we need to learn how, cause this baby is headed for a major shift. Learn skills to help those around you. Can’t be a lone soldier now,make yourself a needed and useful commodity, and basic knowlege will do that. Blessings to all.

  • Patriot Alice

    “Deer caught in the Headlight” Syndrome, including myself. I don’t know if I have to get out of the way, if I do, I don’t know which way to turn.

  • Tumble

    I know what he knows. When they devalue the Dollar it will happen over night. He knows it, but when is the question, it’s close enough for him to dump. We will all wake up one morning with our savings worth half of what it is now. This is what he is avoiding.

  • Martin

    Well this does not sound reassuring to me.
    Here`s some links also to financial content.

  • REAL6

    We have been screwed since 1913. People don’t realize it still. Get rid of the Federal Reserve and you will have got rid of debt in the world!!!

    Remember the Chiasso case in Italy?

    Here is alot of information i have compiled about bonds and whats going on.

    Enjoy 🙂

  • Bobg

    DownWithLibs-I have a theory of how our government should work. Let’s say that the American citizens want a 30 day government paid vacation (Just an example-don’t panic) The pols should say “First let’s see how much it will cost and how we are going to pay for it.” After all costs are in, the facts should be presented to the public. How many would still want that 30 day paid vacation when they find out that their taxes will have to be raised $80 a week to fund the program? This is why we are in the fix we are now in-we expected the money to fall out of the sky.

  • Trish

    People listen up! You all had better remember who GOD is and what the Bible says about materialistic things. All of these things that are happening are because we are in the End Times.Come on folks! The writing has been on the wall for a long, long time about this economic collapse.After all people none of these “things” can we take with us when we leave this world.So get ready to plant the garden, get out your coal oil lamps,forget about the tv, the ipads, and all this techno you-know-what that we all have put ahead of GOD.Thou shalt have no other GODs before me!Exodus 20:3.But thats just it!People Have!

  • Spenser

    Well, yes, unfortunately something like this DID have to happen. I’ve been reading a very interesting book, “The Fourth Turning,” which shows clearly the cycles that our society/economy inevitably move through; these cycles go back milennia and are clearly seen through the lens of history. Check it out, you’ll be glad you did.

  • impeachRonPaul

    Trish: You can take your stupid religion and shove it. No one comes here to hear some ignorant red state preacher telling us how to live. Believe in fairytales if you want, but dont visit your ignorance on everyone.

  • liberty justice

    One person you can blame..
    barak hussein obama.

    He killed the gulf of mexico, not BP.

    He has accepted more government bribes and kickbacks than any one man has over the last 75 years. How much did Rahm Emanual pay daley? Coincidence That a daley went to the white house simultaneously while emanual becomes mayor?

    Dishonesty is the first policy.

    He could of put an end to our reliance on foreign oil with one stroke of a pen.

    Electric cars could have been forced into production, on his second day of office with one swipe of his pen.

    The fact is simple, the us government could care less about the entire population.

    Especially when they have to pay you back your taxes.

    IF income tax checks are stopped, the government could slowly climb back on its feet.

    After all, we are PAYING THEM to run the country, so why should they be paying us back to live here?

    RePaying 7000+dollar returns to 100 million people, well thats gotta stop, if theres going to be any financial gain.

    So not only do you get your income tax returned, you are also begging for social security and unemployment?

    GET REAL. The entire country of citizens is to blame, not just officials, and institutions.

  • Summitone

    Some of the most interesting views and opinions that I can find from many different resources all lead to the same conclusion that we are in for one hell of a ride over the next couple of years. I am sure of the coming turmoil in the Middle East and of the coming despair headed for the American Public but what I am not sure of is the magnitude of each crisis. Right now it seems as though the vultures are picking away at our flesh slowly killing us in the desert heat. What will happen when the attack comes from a much greater enemy? Will our death still be slow and relentless or will it be utter chaos? I really wish I had the answers but I don’t and probably never will but I can study, read and use my guts to tell me when it is time to lock & load. Less than 3 years ago I was sure things were going to be OK and I was still drinking the KOOL AID that so many still seem to be swallowing by the gallons. How things have changed in my life since I woke up to the fact that we have been used as chattel in a poker game played by the Elite. When I start reading of the massive sell-offs from the Insiders of their stock and add to that the unprecedented rise in PM’s then throw in some dollar devaluation, well all I see is the coming tsunami ready to drown us all. You have to ask yourself if the rich and powerful would really let something like this take place without warning everyone else, my answer is YES they would without blinking an eye. The only concern they have is for themselves and their survival. The answers are right in front of your face. PIMCO selling off all T-bills another Hedge Fund managed by Carl Icahn sending all its client money back to them so they won’t be held accountable for what is coming, insider s selling tons of their stock. Yet here we sit divided by race, gender, sexual orientation, phobias of an unknown nature, politics and whatever else the y can find to distract us.

  • DownWithLibs

    @ Bobg:

    I had that same fleeting thought about two weeks ago. The private sector has to fund it all, so let us decide how it is divided. Then I pictured the Unions breaking my knees.;-)

  • Jasper

    At the preliminary close, the Dow Jones industrial average (INDU) tumbled 228 points, or 1.9%, to end at 11,985. It was the worst point drop in the Dow since August 11.

  • Mark

    I guess the Fed will just have to crank up those printing presses.

  • Lennie Pike

    Gold, silver, copper, petroleum, corn, wheat, cotton, soybeans, coffee etc. – associated with honest productive people.

    Paper – associated with lazy worthless anti-human criminal scum bags.

    It’s insane that we keep using their fiat money when we do not have to and when we know what the end result of using it will be.

    The criminal controllers of fiat currency do not even need to be imprisoned or killed – they can be ignored so easily and left to either starve to death or pick up a shovel or something (good for a long overdue needed attitude adjustment) and learn to do an honest days work for an honest days pay for the first time in their small lives.

    They might even thank us if the shovel work turns them into men and they no longer remain what ever it is that they are. It would be a huge shock of an awakening for them – not. I think they were born who they are with zero chance of changing – but only God knows – not me.

    We only need to stop being fooled, and stop using their paper money.

    Let’s go State Legislatures and people who have the power to vote them in……….riiiight.

    Let’s create competing currencies before it is too late. Without any disruption whatsoever, market forces will work to seamlessly achieve the transition.

    Everyone will want and use an honest medium of exchange resulting in a steady growing robust commerce – obviously. I recommend gold and silver. There is enough of it and there must be a method to implement it as currency – or else!

  • brian

    are they figuring on a disaster?

  • Blk_Horse311

    I’m reading this for the first time. I don’t have securities and have never vested in the US’s nat’l ponzi scheme but I’d be very worried now for those who are. ALL the comments here were AWESOME…..except ‘1’.

    @ImpeachRonPaul: You and others like you are one of the EXACT reasons we are here today in this shitty capacity. One World Economy “IS” the New World Order (SHITEHEAD)!…..and this is what YOU WANT??? ***Sry for the bad words but there isn’t any other KIND words to explain these morons away.

  • I am extremely worried about this development.

    Bill Gross has front run POMO so successfully that he should have been charged with insider trading. It was as though he knew every Treasury note that the FED was going to buy back. It was sickening and it has cost US taxpayers billions.

    These guys are just ethically bankrupt. Now that he has dumped his position- he is truly the canary in the coal mine- now I am worried. Let’s watch and see when the FED and Bernank dish up some more “special sauce” to their cronies on Wall St.

  • William

    Summitone’s comments are worth reading. When PIMCO bails OUT of US govt debt, and billionaire hedge fund operator Icahn sends private investors their money back, you KNOW that the proverbial brown stuff is winding up for a run at the fan……

  • MarkW

    And the brown stuff inches ever closer to the fan.

  • Lennie Pike

    Or………we could not fight these people and let Bible prophecy take it’s due course and not interfere with God’s plans since He will do what He is going to do regardless. It’s just that no one knows when that time will arrive and it would really suck to be total slaves or victims of these S.O.B.’s for even one day much less centuries. The logic is to fight them.

  • impeachRonPaul

    Black Horse if by New World Order you mean the religous right is not in control of our freedom, I am for it.

  • mondobeyondo

    The U.S. runs on debt. So does much of the rest of the world, of course. But the U.S. economy would collapse overnight (or at least by Saturday afternoon) if our foreign lenders decided that enough was enough. Eventually they will do just that. And down we will go.

    The U.S. runs on debt. And every day, it increases. It never decreases. Someone’s gotta buy this debt, or else the country’s finances will fall apart. So far, China’s been buying it, along with other foreign countries. But they’re starting to get cold feet. So the Fed steps in, and buys the debt by monetizing it! In other words, a recipe for Weimar type hyperinflation.

    Yes. The U.S. runs on debt. And debt will be our downfall. Are we doomed? Uh-huh. It’s too late to turn back now. Should have taken Exit 107..ha!.

  • mondobeyondo

    Paper money is relatively easy to manufacture. Get some nice quality paper, print some pictures of dead presidents on it, and if you’re the Fed – run those presses for 5 minutes, and you’re an instant millionaire!

    REAL money – metal based money, like gold, silver, copper, nickel, etc – is a bit more complicated.

    You see, you have to dig that stuff out of the ground, and then you have to separate it from the mud, dirt, dinosaur bones, and what not – and then it has to be refined, purified, melted, stamped with a portrait of Lady Liberty or a dead president, etc.

    A very time and labor extensive process. Not like pressing a button on a printing press. Metals have value; paper money does not.

  • Mark

    Here comes the Amero, “the only way to save our economy”.

  • curious

    Correct me if I am wrong, but “dumped” means that somebody else bought them? While it has been said a sucker is born every minute, in the age of the internet, this kind of event is not sucker driven. If you look to sell and no one comes to buy, we’re all in trouble. If you sell and others buy, the trouble from that trade is not the same thing, yet most you claim it is.

    When the buyers dry up, then panic.

  • Some Dork

    I don’t see a MADMAX scenario, what I see are major cuts (30-50%) to “entitlements” (even though few are really entitled to anything from my paycheck).

    That alone will create riots without the added doubling or tripling of gas prices.
    We’ll still have electricity, we’ll still have food in the stores, but just get ready to spend $10.00 for a loaf of bread or gallon of gas.

    Cities & the towns near them will have much more violent robberies and even kidnappings for ransom, it may look a little like Rio with horrible slums from cutbacks in “gubmint bling”.

    Veggie gardens & chickens won’t be mandatory, but like the old days they’ll save you a lot of money in the future “debased dollar” economy.

    I’ve been pondering this for a decade and the 3G’s will keep you alright (Gold,Guns,Garden)
    Buckle up.

  • brian

    What’s Bill Gross going to do with the money when he sells his T bills? Is he going to put the federal reserve notes in a great big mattress? Is he going to buy Greek government bonds? What’s Mr. Gross going to do with the money? I use these dead president-in God we trust-We the people-federal reserve notes everyday. So far no has asked me what they are based on. What’s Bill going to do the money? That’s what I want to know. He’s pretty smart. (Is he the guy with the stamp collection? Maybe he will buy another one?)

  • Blk_Horse311

    @ Trish ~ You go GIRL!!! Praise Jesus Christ, Our Savior. To be one with GOD doesn’t cost anyone anything. No money required. To the ATHEISTS out there….no worries for me for you all are totally screwed! LoL! Sry, it just is what it is and YOU AIN’T!! :~P

  • China and Japan are about ready to pull the plug on our debt, the trade deficit cannot go on much longer and the people of the US are going to see how third countries have been living because the USA is going to be just like these other third world countries because of the global economy. Folks, this has been put into place by the Jesuit order several decades ago and its coming to fruition right before your very eyes!!! For some reason, the American people cannot see things are not going to get better, actually in the next few months, it will progressively get much worse, with gas prices, food prices and a list that goes on and on!!! When several big players such as European Union falls, it will be such a domino effect, the world markets will crash and burn within weeks, not months!!! Better wake up NOW, before it’s too late!!! In my opinion, we have already went past the point of no return, it’s all downhill from this point on!!! Worldwide greed has taken its sway, and now we are going to have to live with for years to come!!!

  • al Goette

    a lot of problems,,, thank god that’ll never happen her


  • Davidm

    @impeachronpaul- typical redneck narcissism- think you’re better than everyone else and to hell with others that don’t believe as you believe. Well, I think that if giving up religion means that I’d get to be a hateful ignorant lunatic like you- I’ll pick Jesus

  • Handy

    Speaking of a “DISASTER” While we have all been focused on the financial things of the world, you should see what our lovely Government is up to these days. Have any of you heard of the Madrid Fault line? Major things are happening right now and it would behoove you all to take a look at it. After watching and reading and searching The Fema documents, it becomes very clear that they are preparing for a major event. Nothing like you have ever seen. Look here for more info.

    If they had no problem doing it before, they will have no problem doing it again. Think about it, they have nothing to lose and everything to gain. I hope you take the time to view the videos. It is very much worth your time. This guy is not a crack pot. Shows the proof if you give him time.


  • Ron Nussbek

    Michael my friend, you have written a master piece, a literary work of genius, a prediction rapped in fact that is beyond most humans ability to comprehend the depth of the dire facts you present. We, as a nation, are on the edge of a Change, not the change we thought Obama would bring but a change from prosperity to a slave debtor nation, owned lock stock and barrel by the Chinese. The wealth of our citizens drained at an alarming rate, there is an end in sight and it’s not pretty.

    It is to late to save everyone, the few who can start storing Gold, Silver or maybe some Platinum will control the have not’s. The coming inflation combined with the growing crusting national debt payment will in just a matter of years force massive layoff’s in State and Federal workers. The compounding will ulcerate and exploding into chaos for the masses who will riot. Our armed force’s will become weak and our enemies will see the opportunity to then strike, the end is in sight except for a faint light in the distance? Could we stop the madness now and reverse course? We have less time than the Titanic had when it first saw the Iceburg out in the distance, will we change course?

  • Natasha

    So every nation should just declare bankruptcy and wipe the slate clean and start over.

    Nothing new about this. Debt is a made up thing and really becomes meaningless in the big picture. Everyone can just agree that the debt doesn’t exist and go on from there because who invented money and debt anyway? PEOPLE – WE THE PEOPLE so we can all agree that debt does now not exist. HAH! Easy solution. Just how many cars and mansions do those fat bankers need anyway? How many vacations can they go on in a year? How much is toooooooo much?

  • So they moved from U.S. Treasury Bonds to U.S. Dollars?

    Hopefully they are smart enough to move to precious metals soon.

  • My2Cents

    What they are expecting is for China and Russia to drop us as their trading partners…and for the US Dollar to be dropped as the world’s reserve currency. Then times will get very very hard and more unjust laws will be passed…and finally people will take to the streets…They will let all who will…fight to the death…some will flee and not fight…what is left will be rebuilt.

  • Vern

    Something like 94% on incumbent politicians get reelected. That happens because people are foolish enough to believe in their empty promises of ‘something-for-nothing’, or more timely…’change you can believe in’.

    How many of your posting here vote for someone because they offer to continue your
    — job
    — retirement
    — medical care
    — tax breaks
    — keep you safe from the boggiemen they create

    94% re elected.
    It isn’t the Banksters doing the voting …it’s YOU.

  • Yikes

    Wow..I am just really sad..and scared too for my family and my children. I am not sure..why we have to let this happen. I mean we can talk this up all we want, but who really wants to live a life of such hardship? I have written a letter to my congressman and other congressman as well. Please if anyone is reading this..we need to help our future..our children ..our country. At least we can try? Please we need to let our leaders know..we need to start speaking openly about this issue. We need to confront the mainstream media..PEOPLE should truly know what is going on.

    I think that if we understood the consequences of out of control spending ..people would understand why this country needs to make cuts. Please educate your family and friends and tell your state representatives that we know about this. Please.

  • mel

    Ok what is Gods name?? Huh? Scripture says of Gods there are many – you can worship your Greek Jesus, I will stick with the Hebrew Messiah born in Y’israel. Your praying to the wrong thing. Jesus mean Horse in Hebrew.

    Ever heard of EHYEH ASHER EHYEH? I am That I Am. take his name IAM EHYEH, add the Hebrew word for Salvation(or saves) which is Shua. You get Ehyehshua I Am Saves. That is the name of the one who died on the Stake. Heck even the screw the language up Greeks knew what Stauros was a stake not a cross. The KJV ‘Translated’ what they wanted not what was scripture.

    Scripture says a prudent man prepares, and its ok to get out of the way of evil.

    Who cares about what Pimco did, worry about your family and love your neighbor. that is what we are commanded to do. Jesus? good luck with that one although you probably have Religion – was it Marx or Descartes who said religion is the opiate for the Masses, he was right(pnly about that) its a bricks and Mortar corporation controlling you and you don’t see that??

  • Let’s face it people know it’s coming and should not be surprised with the total collapse of the dollar. But you cant eat gold or silver. Better stock up on food quick, in a month or so there will be a run on the banks, and if the gov cuts entitlements many people will clean out their retirement, no money, no money to buy food. Better get yours now. I have over 1000 meals put away and I will have my veggie garden, got a gun and some gold, and when the time comes when everyone is rioting in the streets, I’ll be baracading the doors and eating. Efoods provides food with a shelflife of 15 years, better get your snow Forwarned is forarmed, unless you want to pay 25 dollars for a loaf of bread.

    Wood stove, aluminum can solar panel, rain barrels and a garden might help you survive, if people don’t go insane and burn down your neighborhood.

  • Griz

    The fund has kept its very short term paper so we have a little more time to prepare. The Euro is suppose to fall first then the Dollar two weeks later according to some insiders.

  • Robbin

    The Japanese will be hurting with the earthquakes happening. NOW. Check CNN

  • Teknikid

    Time to abolish the central bank, and outlaw banking in general. Also without the Federal Reserve, we do not need the IRS, so it’s time to shut them down as well. If we do nothing, we guarantee a catastrophe. If we abolish the Fed and the IRS, we will reinstitute freedom in the US once more.

  • Economic instability is the name of the game right now. It’s the only environment in which a “one world currency” can be implemented. It’s the only diversion capable of taking the world’s eyes off of the final stages of “one world government” implementation. You can rest assured; the tyrants of the world are using this crisis to its fullest advantage.

    We help Americans find jobs and prosperity in Asia. For details, visit

  • DownWithLibs

    @ MarkW


  • ‘For months, Gross has been warning that the bull market in bonds is coming to an end’

    For months, I have been warning of a USD rally…


  • rmcnnlly

    Congressman Charles Lindbergh, tried his damnest to stop the passage of the Federal Reserve Act. And prior to this, he proved the Money Trust of the mafia banksters existed. He also proved under oath, what they were up to.

    He wrote: Banking and Currency in 1913 to awaken the American people of what the banking cartel was up to. Then in 1917, he knew they had conspired to get America into WWI so they could profit off the war.

    The banking cartel and their profiteers reacted by getting the Wilson Administration to confiscate his books and destroy the plates of Your Country at War and Banking and Currency.

    If it weren’t for his famous son….nobody would even recognize the name of Charles Lindbergh Sr., Congressman from the 6th District of Minnesota.

    God Bless Congressman Lindbergh…and thank you for trying so hard. Unfortunately, the people were duped by the mainstream media like they are being duped today….except we have the internet to spread the truth. Back then it was more by speechs, pamplets and word of mouth.

    Let’s hope America wakes up….but I think it’s too late. The economy is going to collapse.

  • wilderness lives

    I’m with Trish on this one. Yes the good lord has created everything including the fractional reserve lending system. You’ve got to realize though, God is a busy guy. He’s all over the universe planting these seeds of creativity, watching them mature, and making adjustments.
    We really don’t have to worry about anything because when he sees what we have done to one of his few planets capable of supporting complex life, there will be a comet the size of Texas headed here.
    Who would even dream of the idiocy of paying back a system secretly contrived to transfer wealth exclusively to the wealthy. Are you fucking crazy? The FED doesn’t lend money at almost “0% INTEREST”. It lends money at 900% interest. It’s a fraud, robbery, and your Federal Government is in on it for a hundred years. Abe Lincoln and Jack Kennedy tried to fix it. Dwight Eisenhower warned about it. Shit wake the fuck up!.
    Why are you douche bags crying about it here.
    If you want do something organize your local resistance and see how it can grow. At least wright your jerk off representative. If enough voters did read them the riot act they might do something for you. If you do, please emphasize campaign contribution reform, yeah right that’ll work. The bottom line is that there’s a Train coming and you intellectual belly acres are on the wrong track.

  • tommil45

    Watch. Many more to follow. Change our monetary system now.

  • Freemen

    I vote ImpreachRonPaul as the most ignorant fool that post comments here. He is what is wrong with this country. Just take the hand out the easy route lazy give up the country for a 1 world currency . That is most grossly ignorant comment ever on here. But he is blind blue state fool no surprise there.

  • Gabrial Singh

    very simplistic analysis on this blog, as usual. believe half and disbelieve the other half. the game is, which half is bs, and what half is honest??

  • Davidm

    Get ready, the fed is going to start buying treasuries off balance sheet. Knowable bond traders have noticed this to some extent even before QE2. Every time there has been a bad treasury auction, some mystery buyer (presumably out of the Carabean island) steps in. The Fed says it don’t know who these buyers are and suggest maybe it is hedge funds. Right. QE2 may formally end but just watch how the mystery buyer magically steps in to buy treasuries after QE2.

    Let’s hope it fools people a little while longer. It will be a disaster when the world gives up on the dollar. Some predict we could have a major melt down in two to three weeks after this occurs.

    This likely will usher in a new currency. This is what has happened throughout history. It may well be the world currency many bankers want.

  • tj
  • John Foresite

    This has already been fore told in the bible but since none of you folks belive the bible is real truth all those who don`t have the correct truth about futher action will go through watching the
    USA fall to a non super power status under the Pres.
    O-bomb-a plan. You All give him status of a God and he is sinking the ship just as it is written in the Bible.

  • Future Cave Dweller

    Blk_Horse31 March 11th, 2011 at 2:39 am@ Trish ~ You go GIRL!!! Praise Jesus Christ, Our Savior. To be one with GOD doesn’t cost anyone anything. No money required. To the ATHEISTS out there….no worries for me for you all are required. To the ATHEISTS out there….no worries for me for you all are totally screwed! LoL! Sry, it just is what it is and YOU AIN’T!! :~P
    How very “christian” of you :-s

    To all the religious folks… God will not give you shelter, feed your family or protect you from anarachy. You are abdicating personal responsibility to some entity that cares about you personally as a dog does about a weed in the sidewalk. The world is enveloped in greed and we will reap the reward for the apathy and ignorance.

    While people feel they may be superior for believing in God, man is responsible for this mess we find ourselves in. We created this fantasy of money and we can create a new one but unfortunately we are so set in our ways and so many are apathetic or down right asleep and many more are just uninformed or ignorant of the storm that’s about to strike us, that has been forming for decades (maybe even longer)!

    While cuts are being proposed for the struggling and suffering while taxpayer dollars are being handed over to the already filthy rich, we have devolved into this red/blue state hatred and people are too stupid to realize that this has been orchastrated and engineered as well! We have all been played by a handful of folks that have had their sites on world domination and we want to argue about the theory of religion or revisit the feud of the Hatfields and McCoys… seriously?

    People need to look at several things to survive the evil that’s about to envelope us all…

    1. Stock up on non perishables and survival supplies… rice, beans, salt, toilet paper, jerked meats and dried fruits, canned goods, water purification, cloth and sewing supplies, first aid supplies, print outs of natural and homeopathetic remedies, and more things along these lines.

    2. If you have access, get some form solar/wind energy aparatus’, generators, etc on standby and get some greenhouse lighting prepared in a basement or other such location along with seeds (the future new gold) for growing food.

    3. Learn the local flora and fauna and get some hunting and fishing equipment,if it becomes necessary to live off the land for a time. Learn non-highway back roads if you need to leave your area quickly due to rioting and/or military action.

    4. Start getting to know your neighbors and work on bolstering your local “economy”. If major collapse happens, it will be easier for people if they’re already in the mindset of taking care of themselves and each other. There’s saftey in numbers!

    5. If you live in a big city… move. If you live in a smaller area but in an apartment complex… move, even if it means getting together with family members to share a house.

    6. Learn a practical skill set that you can later use to barter for goods and services and learn how to make bread and food preservation such as pickling, dehydration, etc. While the internet and organized education is still available.

    There’s more that people can do to survive the horror that’s nearly upon us. Something wicked this way definately comes and hating on each other or looking down our collective noses at the non-religious won’t be the way to go. “They” have been cultivating these things for a long, long time in hopes that arrogance and ignorance will go further to enslave us in their plot of creating the new feudal system that would feed these creatures need for power and we’re handing them to the keys to the kingdom without so much as a whimper. We can’t fight them with traditional means as they have all the means. It would be like fighting a war where one side has all the real weapons and the other side has sling shots and beebee guns.

    If you want to believe in God, that’s fine… just remember, “God helps those first who help themselves”. Religious smugness won’t be the answer here. Turning our backs on evil is though. Its amazing to me how people still haven’t figured out that by shoping where we do and playing the game by the rules they set up, we’re all but laying down and letting them do what they will to us, without a single question! Its time we created our own rules!

    Just my $1.02… lol

  • Tom

    Please be prepared.

    Visit my website.

  • Twicebitten

    I don’t think Bill Gross would dump all his Treasry bonds. If you did just a hair deeper you’ll find his shortened the duration on his Total Return Portfolio to just over 3.75 years. Hardly the same thing.

  • Happy

    WOW, can I know who is buying? In every market, there is a willing buying and a willing seller. What has the buyer got to say. That’s my point. Period.

  • JR

    Aw c’mon guys! Nuthin’ a few mindless rounds of “Yes we can” (or, more helpfully, “Yes, we have no bananas” can’t solve.

    Sorry…. gotta run! Obama’s people with their free daily chicken are at my front door!

  • dizzyfingers

    Good for Bill Gross and his customers.
    All of us should be happy that at least one US businessman has some common sense.

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