The Federal Reserve is on a roll and they are smoking some bad shit!

They (Federal Reserve) are watching as the 3mth bond yield dipped into negative territory. The money printing is going on overtime, it's brutal, check the USD tanked and Gold is (current) 1165. So it's all risk on (stocks). But the US treasury is about to issue more debt to the market.

But it's choked up and demand has fallen off.

The Fed will re-inflate assets markets till the endgame comes. It has too, if a sudden rush occurs from risk assets to risk averse assets like the US dollar and Treasuries the high yields on bonds will crush their value and with the Federal Reserve being the big holder that they are...fuck what an unrealized loss that will be; but the endgame, or the build up to the endgame, will be market flops on bond auctions (globally). Hence the Treasury yields all dipping in the last month or so as investors still buying up risk assets. But Obama needs investors to buy Government debt and the Fed have gone mad about driving down the yields on Treasuries.

The Federal Reserve and Obama administration are solely underpinning assets markets, and as I said, till the whole thing collapses. (Refer to article from the Telegraph reporting that Société Générale (bank) are preparing for a worst case scenario in a debt market collapse).

Either way it's a FUBAR situation with gold as the winner. Gold being an inflation and crisis hedge.