I never said markets predict the future.

I said they are a good forward looking indicator. Major difference ;)

> The fact that U.S. bond rates are so low does not mean that "something else is at work and the situation is not as bad as it seems." It just means that right now, folks can't think of a better place to put their money than in U.S. bonds.

Well....implicit in my example was that what people tend to do is to complain about America's debt-to-GDP and then suggest some other asset class that investors should be putting their money in - like gold or w/e. Given the large gold sell off a few days ago, I am sure many of those guys are pissed.

Either way, my point was simply that as a general rule, the sovereign bond markets are usually good, forward looking indicators about the health of the economy of a country (relative to others). That's all I was saying - which is contrary to what politicians tell the people. But because they don't know any better, they accept what they hear as gospel because it fits a narrative in their head - bankers are stealing the wealth of the world.