Reply #3: Love this bit

[abelenkpe]

(snip)


But beyond the Japanese and Arab shocks (see GEAB N°52 ), the process of US Federal debt market implosion in the second half of 2011 is accelerating under the effect of four other events:

. the introduction of budget austerity in the US (as anticipated in GEAB No. 47) which condemns US local authorities to a major crisis in the market for their debt ("Munis")
. impossible for the Fed to introduce QE3
. the inevitable rise in interest rates against a backdrop of global inflation
. the end of safe-haven status for the US currency.

Of course, these events are related and, characteristic of a major crisis, we are entering a period that will see a mutual strengthening of their effects, leading to this sudden shock in the second quarter of 2011. Incidentally, we could add a fifth event: the complete decisional paralysis of the US powers. The daily confrontation on virtually all subjects, between Republicans (hardened by the "Tea Parties") and Democrats (demoralized by an Obama administration that has betrayed the substance of its campaign promises (7)), tends to show, a little more each day, that Washington has become a sort of "Ship of Fools ", tossed about by events, without any strategy, without willpower, incapable of action(8); in other words, according to LEAP/E2020, when the US Treasury Bond collapse begins, one cannot expect anything from Washington other than a colossal squawking that will only worsen the crisis.
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