Tom Usher commented or added the following:
"Bonds are at ridiculous levels and the next bubble waiting to burst, but the Fed will try to prolong it as long as possible because under Clinton the bond maturities were significantly shortened, and any significant break in the bond market means higher refinancing costs for the U.S. However, the Fed can't control long term interest rates when capital flees the U.S. because of political and financial instability and that is what will most likely happen down the line."
Where's it going to go, China? If you think the Chinese government has a handle on its situation, you're dreaming.
China has huge problems that the China-bugs aren't openly discussing so as not to upset their speculative investments in China.
The news coming out of China and reaching the US mainstream does not include much about the terrible environmental disasters, the major labor strife, the lowering of expectations for college grads there, and frankly, the massive real estate bubble.