Treasuries, what is he thinking of? The last time the markets got like this treasuries became "certificates of confication."

Here are two charts.

The first shows a long, long, long run up in treasuries. Unlike gold this has to stop because the interest rates are approaching absurdly low levels; far less than inflation. It has already experienced a blow-off top that I doubt it will ever match again. Even if we go to deflation gold will rise by nore than a crumby 3 or 3.5%.

http://stockcharts.com/h-sc/ui?s=$USB&p=W&st=1980-01-01&id=p72764831434&a=170065693

The second shows Gold relative to the 30yr. bond. PLEASE NOTE that gold has been blowing away the 30 yr. bond for the last 7 years or so and this has happened while the bonds have actually been gaining in value. What will happen as they start to lose value. The anotations on the chart tell you what will happen.

http://stockcharts.com/h-sc/ui?s=$USB:$GOLD&p=W&st=1980-01-01&id=p01676690975&listNum=8&a=135407107

The bond market is the last and biggest bubble left in the world and it will blow to smithereens at all levels; national, state, city, municipality and it will take down the banks, the FDIC and pension funds with it.

The current financial system is like the tallest building in the world supported by a wooden 1st floor framework. The guys working in the labs on the 2nd floor to enhance degradation in landfills created super termites and they got loose about two to three years ago.

P.