Rick Santelli on CNBC is on the air this morning, giving his theory on why Treasuries are falling amidst panic in the stock market. He claims that he thinks it's because people are starting to pull money out of bonds to get ready to start buying stocks. I think he is way off. NO ONE has been buying stocks over the last few days. The real reason is that people are buying gold instead of US paper! I think this is a major paradigm shift, and that foreigners are starting to balk at holding US debt. Much more of this and the Fed starts to monetize. This is a development I am going to continue watching, because it is a prelude to a major collapse in the dollar.

Hysteria