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Unfortunately, bond investors appear to be betting on the latter. The yield on the benchmark 10-year Treasury note fell to about 2.57% early Monday afternoon. That's the lowest level since March 2009.
Falling rates are often a sign of a weak economy. Earlier this year, when many experts thought that the worst was truly over in the United States and that a fairly healthy rebound was possible, the yield on the 10-year traded as high as 4.01%.
Just as the government is trying to prevent people from investing in anything other than T-Bills by raising taxes on taxable interest and dividends to confiscatory levels, it's also trying to prevent you from parking your wealth in assets, like gold, that compete with the paper dollars issued by the Federal Reserve and the Treasury. A press release from Rep. Anthony Weiner, Democrat of New York, not yet (as of this instant) posted on Mr. Weiner's Web site, announces that a September 23 hearing of the Subcommittee on Commerce, Trade, and Consumer Protection (a subcommittee of Rep. Henry Waxman's Commerce Committee) will focus on "legislation that would regulate gold-selling companies, an industry who's [sic] relentless advertising is now staple of cable television."
Rep. Weiner Announces Hearings on TV Gold Dealers
Washington DC – Today, Rep. Anthony Weiner (D – Queens & Brooklyn) announced a hearing of the Subcommittee on Commerce, Trade, and Consumer Protection to discuss legislation that would regulate gold-selling companies, an industry who’s relentless advertising is now staple of cable television.
Invitations to the hearing have been sent to representatives of Goldline International, the Federal Trade Commission, the Consumers Union and several other witnesses. The hearing is set to take place on September 23, 2010.
The announcement follows a report released in May by Rep. Weiner’s office which investigated the business practices of Goldline International, a precious metals dealer that uses aggressive sales tactics and conservative spokespeople like Fox News’ Glenn Beck to sell overpriced gold coins. Additionally, the Santa Monica City Attorney's office launched a joint investigation with the Los Angeles County District Attorney's office into the possible criminal practices of Goldline International. Goldline’s actions have also prompted a class action lawsuit, filed in South Carolina, against the company on behalf of customers who allege they have been ripped off.
The average Goldline markup was 90% above the melt value of the coin. The largest markup on any coin was 208% above the melt value. Furthermore, the average Goldline markup is 47% higher than better-priced competitors, with some of the company’s markups going as high as 102% compared to its competitors on one of the coins they offered.