Treasuries Rise for Second Day as Bernanke Says Purchases Support Economy

Excessive debt caused by cheap money created debt implosion and sluggish growth that spawned from it. Cheap or cheaper money cannot be both the cause and solution to the problem. The official policy, though never "officially recognized", has always been devaluation of the previously issued debt through currency debasement or cheap money! While the media portrays gold as relic of the past and buyers as gold bug hoarders rather than savers, they ignore that it (gold) is doing exactly what it's suppose to be doing under the circumstances. Gold is the relief value within a close system about to go super critical. As confidence in centralized policies erodes, so will the stigma of labels.

Treasuries rose after comments from Federal Reserve Chairman Ben S. Bernanke yesterday increased speculation the central bank is preparing to boost purchases of U.S. government debt.

Two-year note yields were near the record low reached yesterday as Bernanke said the first so-called quantitative easing round improved the economy and more purchases would “ease financial conditions.” Japanese 10-year bond yields fell to the lowest level since August 2003 after the Bank of Japan pledged to keep its benchmark rate at “virtually zero” until deflation ends and set up a fund to buy government bonds.

Source: finance.yahoo.com