It is hard to believe the market hasn't reacted to this PONZI scheme that is the US treasury market. It comes as no surprise that the FED themselves have been buying many more treasuries than the official auctions indicate in their QE program. The surprise is how they manage to keep this PONZI scheme going this long. Of course an audit of FED activities would blow this wide open ergo the infighting to prevent this. I also think that maybe gold market was reacting to this PONZI scheme and the cartel has temporarily helped put gold back in the box with the help of all the little gold letter writers/traders/technical players/specs etc., doing the bidding of their masters. I think the fact that the open interest in gold in COT just will not drop much supports the view that gold and large new gold investors and probably foreign central banks (since they are buying gold or in the case of the EU, not selling anymore) have this PONZI scheme in it's sites and are completely aware of the issues with US treasuries and debt. I would conclude that gold is simply now preparing for the next up move reaction to this US treasuries PONZI scheme with this forced correction and the shorts that can't seem to cover are simply pawns (with the backing of Treasury and FED) in a much larger debt story unfolding.

Delaying the inevitable and creating inflation has always been the only strategy, other than default.