Earlier this week, former MPC member and extremely illustrious economist, Charles Goodhart, told Channel 4: "Interest rates will go down from now, by how far and how fast nobody knows… They could go to zero. They went to zero in Japan in the 1990s when the Japanese had a recession or depression which went on for a long time and was quite severe."
Then bond marketplace independent of Federal Reserve action declared a defacto interest rate hike: the interest rate on the ten year US Government Note, $TNX, increased to 39.70 ... $TNX
The three month chart of DXKSX, compare to ^tnx, hyg, and iyf reflect the breakdown of trust that occurred between lender and debtor on Septemeber 11, 2008, that is 9-11-2008, when banks discovered they could not sell stock to obtain capital. Clearly a run on the US Treasuries is underway ... DXKSX.
The lack of trust increased even further as the SEC has thrown the fair value rule, and the accountants have withdrawn the mark-to-market standard of FASB 157, and replaced it with mark-to-fantasy assumptions of management: this resulted in a cardiac arrest in lending and a dramatic fall of stock value world wide.
Without trust the worldwide financial system can only breakdown further.
The inevitable world wide financial system collapse when it does occur will be a fulfillment of bible prophecy of Revelation 13:4