A Topsy Turvey World

The Japanese economy will go under as that country struggles to battle the aftermath of the Fukushima nuclear disaster. It’s over for Japan, but the Yen continues to roar higher. It just doesn’t compute.

Money managers knew that the U.S. was bankrupt, and a debt downgrade was possible, but they clamoured into U.S. Treasury Bonds in spite of all of this – and the bonds soared. It made no sense.

Obama’s Quantitative Easing is destroying the world’s Reserve Currency, and only days back he pushed their debt limit out to the final moment before settling. Now that the inevitable resulting mega market crash has begun, it’s blamed on the European Central Bank and Obama gets a pass. That doesn’t make sense either.

Now that the U.S. debt downgrade is a reality, logic suggests that Treasury Bonds should tumble. That’s rational, but since logic is out the window, I can hardly wait to see what happens to bond prices in the face of this latest fit of sanity at Standard and Poors.