A voracious consumer ....

Of US IOU's, China has been playing a key role in keeping US
treasuries in demand. Prompting US Fed Chairmen, present and
past, to declare it a conundrum, that despite 5.25%% fed rate
the market interest rates of treasury bonds are vexingly low
and seriously compromises the ability of the central bank to
fight inflation.

Today, the entire US treasury complex rose above 5%%.

Prompting Wall Street to declare its own conundrum: With in-
flation under control, growth rate slowed and housing in the
tank, why should the yield curve be positive? Many theories,
are offered for free. Chief among them, is China wants to be
compensated for risks, finally. Whatever the real reason is,
the implications are, in vernacular Californese, totally gi-
normous. Typical of Wall Street, the market promptly tanked.
Their famed proclivity:

Shoot, aim and ready .... :)

Regards,