It surprised all the people that have been saying to short them. I would never short them (US bonds) because to do so is to be betting against the Fed, and they have a lot bigger gun than I have.

I think those who have been saying the dollar would tank and interest rates would rise would be correct if market forces were allowed to price bonds. But as we see from a multi trillion balance sheet, the Fed has allowed anything BUT market forces to price interest rates.

I think those like Peter Shciff, Casey and others that have been saying interest rates will rise will eventually be vindicated. Thing of it is, for an investor being 5 or 10 years off is just the same as being wrong.

I think very few imagined (with the exception of the insiders to the banking system) the Fed would ever go to the lengths it has or the market would allow it to do so without balking. The fact that a good portion of the rest of the world has blown up financially has really helped the Fed to keep the Ponzi going.

But like all manipulations, it will eventually end. The Fed's hope was that growth would pull us out of the abyss. I think now, they are just to the point of not knowing what else to do but continue on. So here we stand.

John