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We survived the tech bubble and housing bubble, but we are moving towards something more catastrophic than any of those? Some experts begin to fear the worst.

Let's review of recent financial events. The collapse of global financial markets has created a wave of panic and a wave of money has been invested in what has always been considered safe for short-term U.S. Treasury securities. This essentially means that investors are willing to put faith and lend the government money. Firstly because, despite our national debt amounted to 10.59 trillion U.S. dollars staggering and growing, the United States has never failed to secure payment of debt. This appetite suddenly returns on Treasury bonds has led to their lowest levels since the Great Depression.

Over the last few months, officials Federal reportedly paid large sums in relief measures to alter the balance of government. When you add a U.S. deficit rise in the mix, you get a situation that is causing sleepless nights for someone who is attentive.

How far can you go?

We waited to see how low interest rates on Treasury securities could go before the rapid flow of investment would dry up. Now, it seems that even zero is too low. One day during the second week of December, the annualized return on bills three months in secondary market to hit zero at least in the negative 0.01%, and later that day rose to 0.01% positive.

This means that investors are so scared of the market, but she still has faith enough for the Government of the United States are willing to risk to make less money at maturity than they had invested and earning no interest on the road.

The Treasury has had to auction T new Treasury bills at a rate still negative, but on December 8, actually sold $ 30 billion in T-four weeks with a yield of accounts of exactly zero. Anyone who bought the box sold in four weeks, but not a penny more than you paid for them. At this rate, you may be very easily save a few $ 100 bills into a coffee can and bury it in the backyard.

You might wonder who would be willing to buy Treasury bond for the return of nothing or almost nothing? It turns out that there were many queue up to buy one probably would not yards, if, indeed, that the federal reports, may have sold up to four times what they did. In fact, while there are many investors individual, large institutional investors such as pension funds, central banks and international, are key players in the market for Treasury securities.

How long can it last?

There are a lot of money in exchange for Treasury bonds, which can not last forever. Investors seem to be investing money in government securities with the same fervor they have for housing has increased and the dot-com mania. The U.S. public debt has always been regarded as the safest investment in the world. But now, some fear that the bond market is venturing into the territory of the bubble.

The big question is asked, "How long can it last?" This is a bubble of this size to implode, it would not have enough sandbags in the world to stop the flow of money going out. When the deluge was over would not be so little in the Treasury, the government would be forced to pay higher rates to its growing debt.

Our holders External debt if that day comes Doomsday would be a devastating blow to the economy and the dollar. At the first sign of the bag to enter a long period recovery, investors would move away from underperformers bills. The Federal Reserve may be forced to monetize the securities Treasury, or to increase the rate hike.

However, China and other foreign countries have a large share of U.S. debt. In fact, about half of the nation's 5.3 trillion dollar U.S. debt listed is owned by countries like Japan and China. This means a change in prices would reduce Treasury falling U.S. dollar, the threat of hyperinflation and, finally, depression.

And yet, despite the United States has the dubious distinction have started the firestorm of the global economic crisis, our bonds are still considered the safest investments the world.

What's in store?

Like any thought housing prices could only go up, we now know what kind of "exuberance irrational "that blinds us what's coming. Jim Grant of Grant's Interest Rate Observer recently reported on CNBC: "There are more risks in things people think they are intrinsically insurance, including cash and treasury bills, from things that people perceive as risky. "

It seems that even if Treasury yields are at their lowest point, even institutional investors are more concerned about the preservation of capital that they can achieve greater profitability. The interest rate and Treasury are at or near zero.

If things worsen and drag on the territory of negative returns, which investors are actually willing to pay the government to keep their money to ensure custody? So far, nothing indicates that things are going to say. Although, as none of the rules we have experienced in recent decades seems to apply, we can not speculate on the future.

We believe that the interest rates the Treasury is likely to continue to remain lower than during mid-2009, or at least until the recession begins to lighten. If the market remains skittish fear factor living, people will continue the flow of money in the Treasury of the guard, the low interest rates or not.

Jose Roncal is co-author of “The Big Gamble: Are You Investing or Speculating” which Donald Trump endorsed as “a great read”. Many of the author’s articles related to finance and the global economic crisis can be found at http://www.financialspeculation.com