Treasuries

The price decline in 30-year Treasury-bond prices has been even more dramatic: An historic 27-point plunge from 142.62 on December 19, 2008, to 115.67 on June 18, 2009 … followed by a feeble recovery … and now, as with Treasury notes, a new, ominous price decline and surge in yields.

Now, your retirement savings are at risk. I first commented on the likelihood of a 401(k) confiscation about a year ago. Because the government and Wall Street prefer to trick people and prey on the ignorance that has crept into our once great country, this confiscation it appears is progressing on schedule in a not very subtle form that should pass muster with most of the sheeple.

The White House estimates that the government will have to borrow about $3.5 trillion more over the next three years. On top of that, the U.S. Treasury has to refinance, or roll over, a huge amount of short-term debt that was issued during the financial crisis. Treasury officials estimate that about 36% of the government’s marketable debt – about $1.6 trillion will mature in the next 12 months.

China and others can’t buy Treasuries at the level that the US needs it to.