Several Years After the Money Printing of the Fed has Began, Inflationists Still Don't Undertand The Treasury Market's Behaviour

After many calls for hyperinflation, silver at $300, gold at $5,000, treasury rates at 10, 20%, inflationists still can't get around the fact that yields are at a record low, and still cannot understand that we're on the same path as Japan, except 20 years behind.

(Bloomberg) May 30, 2012 — The U.S. Treasury 10-year yield slid to a record while stocks tumbled and the euro weakened to a two- year low as Spain struggled to recapitalize its banks, concern grew about Greece’s future in the euro and American home sales declined. Italian and Spanish bonds tumbled.

Ten-year note yields lost as much as 12 basis points to 1.6254 percent as of 11:45 a.m. in New York. [...]. Two-year German yields reached zero for the first time.

 (Bloomberg) May 30, 2012 — German two-year notes rose, sending yields to zero for the first time, as investors were prepared to forgo a return in exchange for safety amid Europe’s escalating debt crisis. 

Ten-year bund yields in Europe’s largest economy also dropped to a record.[...]

“It’s just panic,” said David Keeble, head of fixed- income strategy at Credit Agricole CIB in New York. “We have so few safe assets in the world that just a small move in risk sentiment causes quite strange and outsized reactions. Until we’ve got the Greek election out of the way we’re just going to be in this horrible world. If you’re buying Europe right now there’s only really one credit which people want.” 

Germany’s two-year note yield fell four basis points, or 0.04 percentage point, to zero, before closing at 0.01 percent at 5 p.m. London time

I agree that there's a shortage of safe assets. The real safe assets, gold and silver, have bubbled to much, that they've showed there are not safe at all: Silver is down almost 50% from the peak a year ago!

In the meantime, idiots at Sprott Asset Management (namely, the founder, Eric Sprott, and the Chief Investment Strategist, John Embry) are still calling the market manipulated, and gold and silver to go to the stratosphere. I'm so saddened as their clients will lose their shirts on this.