Treasury yields have surged since the Fed officially began their quantitative easing program in the middle of March.  Of course, the U.S. government believes they can eliminate a debt problem by creating more debt (brilliant, huh?).  They’re seeing the direct effects of their money printing strategy as investors around the globe pile out of U.S. treasuries as a result of the U.S. government’s total disregard for its own currency.   We’ve been saying it for a year – you can’t solve a debt crisis with more debt.  Consumer debt based de-leveraging recessions aren’t your average recessions that can be solved with lower rates and a printing press.  The Obama administration is playing a very dangerous game of chicken here with the bond market.  I doubt the bond market will lose – as it rarely does.

Stocks are tanking as yields soar and commodity prices jump.  Exactly what global consumers need:  higher raw material prices, stagnant wages and more expensive money.   For more on QE fail please see here.