Have the 30Y Treasuries cracked?

Larry Edelson had predicted that there would be a 'crack' in 30Y Treasuries followed by a deluge of US Dollars flowing into stocks and gold. Well, the 30Y Treasuries cracked as it fell below the support level of 144 all the way to 142. We can at this point expect a reaction rally to 143, but the next support level is 135.

There is more significance to this move than readily apparent. It reflects the Chinese 'de- Americanization.' Between Obama's spending spree and Bernanke's willingness to underwrite it by printing money, Chinese holdings of reserves have suffered an estimated 30% loss of value. The tsunami of counterfeiting of the US Dollar on such a scale is igniting countermeasures. One countermeasure is the currency wars. The other measure is 'de-Americanization,' selling off of Treasuries. Yet another defencive measure is the conducting of business in other currencies than US Dollars. The Chinese are buying any and all gold that they can so the Yuan will be backed by gold. The FED is financing the periodic takedowns of gold prices in the London and Zurich markets (NY does not trade bouillon, only paper gold). The FED action promotes Chinese efforts to buy gold cheap. KWN reports that Goldman-Sux has a short position in silver that equals nearly the available silver supply. As the paper position in gold is 100X the available supply, there is a great deal of question as to what will happen when owners of the contracts attempt to get delivery. These will be interesting times.