Today the 10 year bond rate exceeded the 3.5% danger rate. I assumed this had prompted the order from the Obama administration to pull down G&S through ordering the Cartel to undertake massive shorting to make the bonds look more attractive. Tonight Harvey Organ has a slightly different spin on this saying that the Cartel initiated the shorting to cover their interest rate swaps:

"The bond yield rising is putting tremendous pressure on JPMorgan and friends due to their massive interest rate swaps. So not only do they have to fork over billions of dollars per day in collateral for their offside in these swaps but also in their shortfall in the silver and gold metal. The bankers are in panic mode and this is why they are striking with massive shorts."

Yesterday Organ said that JPMorgan was in trouble over the increase in the 30year bond rate.

"As I pointed out to you on many occasions, it is the rapid fall in bond prices that are disturbing the bond derivatives. You see there are over 70 trillion dollars of interest rate swaps owned by the bankers and the majority is owned by JPMorgan. In a nutshell, these guys have bought trillions of long bonds in the future and shorted an equal supply of short term say 30 days notes at zero yield. Thus a rise in future bond yields of say one full percent is causing massive dollar losses for JPMorgan ie. say 40 trillion x 1% interest rate loss = 400 billion dollars enough to wipe them and just about every other banker into oblivion. This is the paper default that I say will happen. The other default of course is a physical default which will produce the same bank run."

http://harveyorgan.blogspot.com/