Rising Rates Could Prove Fatal To Fake Recovery
by David Tanner
Okay, anybody that has been walking around with their eyes open knows that we are not in a recovery. Of course, saying that we are is the Fed's only way of keeping a lid on this explosive cocktail of lower interest rates and easy money. And what might be lurking out there to provide the spark that lights the fuse that blows all this fatal brew into the stratosphere?

Higher interest rates.

This is an excerpt from Rick Ackerman's daily commentary:

On that score we have some potentially very bad news — not only for the Fed chairman, but for all debtors. Take a look at the chart above and you’ll see why. The price of the 30-Year Treasury Bond future has been falling hard for two months, with a corresponding increase in yields. The interest rate on the long Bond was 3.73% when the slide began; now it’s around 4.43% — a rise of nearly 20%. Rick’s Picks expects the March T-Bond to keep falling, presumably to a “Hidden Pivot” support at 120 10/32. At that point, yields will have risen to about 4.60%. Things could get really ugly, however, if the support fails, since that has the potential to send the futures plummeting all the way to 117 22/32. At that price, the long-term interest rate would be around 4.82%. Spread this asphyxiating rate over public borrowing, adjustable mortgages and revolving credit, and the extra tab would run into the hundreds of billions of dollars for taxpayers, homeowners and consumers.

The public, the government and corporate America are all in debt up to their eyeballs, and higher interest rates only makes servicing that debt harder. Higher interest rates now would draw more money out of the economy and place it in the pockets of the banksters, the ultimate culprits of our current economic collapse. The final result would be more defaults, job losses and business failures.

Of course, that IS the ultimate plan of the power-elite: to drive this country into the ground so that we will cry out for them "save us." And save us they will, as the last vestages of our freedom are willingly surrendered by dumbed-down Americans who would rather let the establishment do their thinking for them and blindly swallow everything the media reports as truth.

History always repeats itself and for those of you who missed last week's post on Joseph, I'd urge you to give it a read so you can see where we are headed and how to protect yourself.

“And when money failed in the land of Egypt . . . all the Egyptians came unto Joseph, and said, Give us bread: for why should we die in thy presence? for the money faileth.” Gen. 47:15