Same ol', same ol'...

With the US Dollar getting trashed, the yield curve is steepening. Easy monetary and fiscal policies have reduced short-term US Treasury bills yields to historically low levels, but with inflation fears ratcheting up, 10-year and 30-year US Treasury bond yields are breaking out on the upside, simultaneously driving down the price of these bonds. We are in a world of hurt, ladies and gentlemen, because the Fed and US Treasury department are losing control in their attempts to manipulate financial markets and "manage" the economy.

I know I sound like a broken record, and my investments have been positioned accordingly for months now, but there are no winners in this game of Russian roulette central bankers worldwide have been playing. In a race to devalue their own respective currencies, governments are running out of options--other than to just print more currency. Commodity prices are rising, but the more accurate statement is that currencies worldwide are being debased--hence, prices are going up.

Net result? Hyperinflation. This is not good for equities, bonds, or real estate, as borrowing costs increase. The silver lining is if you can lock in a low fixed-rate mortgage, so real estate should be fine years from now. With inflation, savers are punished, and debtors rewarded, as they pay back loans with deflated dollars. Your dollar will never be worth more than it is today! I've posted what I've done--people have to make their own decisions. Protect yourselves, but expect higher inflation.