“The possibility that the Feds may use negative interest rate policy (NRIP) to combat looming deflationary trends is definitely present. Investors cannot afford to be in the dark when the Fed does implement this drastic measure to ward off deflation, and its negative consequences on the economy. Implementation of negative interest rate policy will require investors to shift their focus and consider the implication on their portfolio.”

….read the entire article HERE

Jim Puplava, Echoing Gundlach and Icahn, Warns of Looming Bond Market Crisis

In the age of zero interest rates, many investors have been forced to find yield wherever they can. For many this leads to investing in high yield bonds. But many investors do not read the fine print, so to speak, when buying bond mutual funds that contain riskier securities.….continue reading HERE

Central banks have been dumping US Treasury bonds because of the debt ceiling problem and the Tea Party will shut down the funding if they have their way. This is illustrating the entire problem. The debt ceiling only ever rises. We will see a rise in taxation and this will help to collapse the US economy and thus the world. These people we call “representative” only represent themselves and they have no solution to this Sovereign Debt Crisis. It certainly looks like we will be seeing that blast to new highs next year. So hold on tight. This may even hurt a bit.

….more from Martin:

Money & Politics: The Corrupt System is Starting to Come to a Head

Originally published October 4th, 2015.

The fiat money system should be branded a “crime against humanity” because of what its unbridled excesses must inevitably lead to – chaos, destitution and war – which is what we are clearly heading towards.

Over the past year or so, the Fed let the idea take hold that it was going to gingerly start a rate rise cycle, which helped to fuel a big rise in the dollar. The ruse worked and the Fed got a lot of bang for no buck. However when push came to shove and the time arrived a few weeks back when they had to “put up or shut up”, they backed down, and it became apparent that the whole thing was a hoax. They do actually….continue reading HERE

Curve Watcher’s Anonymous points out 3-month treasury yields dipped briefly negative on several days recently.

Yield on the 3-month bond was negative again today. Here is a table I put together with Treasury Yield Quotes from Bloomberg.

Treasury Yields vs. Month and Year Ago

One could also use US Department of Treasury Daily Treasury Yield Curve Rates to produce an end-of-day view as opposed to the intraday

snapshop above and chart below.

Yield Curve vs. Month Ago and Year Ago

Larger Image

Long End Flattening

The time line is not to scale, but the above chart still tells the correct story. In particular, note a negative rate at the front end and the flattening at the long end of the curve vs. a month ago and a year ago.

Economy Strengthening?

Three month treasuries should not be negative in a rate hike environment.

Yields at the short end of the curve, from 6-months to 2-years are slightly higher than a year ago, an indication of anemic hikes. But if hikes are coming, rates should not be lower than a month ago.

The yield on 6-month treasuries actually declined 19 basis point in past month.

Are hikes really coming?

Recession Warning

None of this should be happening in a rising rate environment with an allegedly strengthening economy.

In fact, action at the long end of the curve coupled with negative yields at the very front end is outright recessionary behavior.