from King World News:
As Bernanke now prepares to leave the Fed, today the Godfather of newsletter writers, Richard Russell, covered everything from the “center of the world,” to silver, stocks, interest rates and the US dollar. Russell also included a great many charts, but of special interest to KWN readers might be the chart covering silver and the US dollar.
Richard Russell: “Ever since I started Dow Theory Letters I’ve been extolling the magic of compounding. But how about the magic of compounding in reverse along with rising interest rates? Below we see the widely-followed TLT fund, and sadly, it’s in a distinct downtrend. Declining bonds mean rising interest rates, and as the government rolls over its monstrous and compounding debt, the situations becomes increasingly impossible to manage.