Dear Friends,

Please do not be bothered by today's intervention. The following news is what creates the absolute need for QE.

It is the thesis of my Formula of 2006 of no major recovery that gives the foundation to my thesis of QE to Infinity.

Treasury Yield Descending Signals Slowdown By John Detrixhe and Daniel Kruger - Feb 29, 2012 8:55 AM MT

The $10 trillion market for US Treasuries is signaling that the economic recovery may be poised to weaken even as consumer confidence rises toward pre-recession levels.

Yields (USGG10YR) on 10-year Treasury notes, the benchmark for everything from mortgage rates to corporate bonds, fell as low as 1.89 percent yesterday, down from this year's high of 2.09 percent on Jan. 23, according to data compiled by Bloomberg. The yield averaged 2.76 percent in 2011 and 3.19 percent in 2010.

More...

As an example, there was additional confirming news today concerning QE, if you follow the money, financed by swaps emanating from the US Fed.

Swaps are short term in nature but can be extended at each due date to infinity. Never let the word Federal Reserve Swap fool you.

This day's fall in gold is pure window dressing. Do not be concerned.

Respectfully,
Jim

CIGA Ken's Commentary

Could this be a right shoulder coming into place?