"We have today in my opinion, a symptom of inflation-of monetary inflation. And this is corporate profits have rebounded - they are at record highs. And the second symptom is essentially a bubble in high quality government bonds." -Marc Faber
While speaking with Bloomberg, investor Marc Faber describes the illusion that is the government bond market. What appears to the unwary as confidence, as evidenced by the seemingly positive bond market, especially in U.S. treasuries, is actually an expression of fear and mistrust in the financial system. Government bonds, and American government bonds specifically, are merely the least ugly guests left at the bar. The governments of Europe and the U.S. have so muddied the gene-pool that a "flight to safety" means paying the life support bills for those same governments in the hopes that there will either be a miracle, or that at least those bonds will be the last things paid off before the system collapses. He does say it with a smile, though!