The upside breakout in the 10-year note we've been warning you about... aka "the government's biggest nightmare"... just arrived.
To recap, the 10-year Treasury bond yield is the most widely watched interest rate in the world. This is the rate of interest Uncle Sam must pay his creditors in order to borrow money for bailouts, welfare, "free health care," and various other crowd-pleasers. It's also the rough benchmark banks use to set mortgage, business-loan, and car-loan rates.
Some analysts, like our colleague Porter Stansberry, expect this number to go much higher than the 3.6% level it traded at for much of 2009. He argues America's creditors will demand higher rates of interest in order to compensate them for the risks involved in loaning money to the sovereign equivalent of the "spend it all" town drunk.
As today's chart shows, Porter is getting "righter." Yesterday, the 10-year yield punched into the 4% level for the first time since June 2009. This is an important upside breakout. The cost of borrowing trillions for "bailouts and handouts for everyone" is rising...
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