It is now trite to use the phrase “never before in history” as it is applicable to so many activities, especially economic ones.  But smugglers caught with suitcases holding 134 billion in US bonds…that has never happened before!  “Two Japanese men are detained in Italy after allegedly attempting to take $134 billion worth of U.S. bonds over the border into Switzerland. Details are maddeningly sketchy, so naturally the global rumor mill is kicking into high gear.

Are these would-be smugglers agents of Kim Jong Il stashing North Korea’s cash in a Swiss vault? Bagmen for Nigerian Internet scammers? Was the money meant for terrorists looking to buy nuclear warheads? Is Japan dumping its dollars secretly? Are the bonds real or counterfeit?

The implications of the securities being legitimate would be bigger than investors may realize. At a minimum, it would suggest that the U.S. risks losing control over its monetary supply on a massive scale.”

Here is a link to an interesting article which notes that the inability of the US to control its currency may be a very bad thing indeed: http://www.bloomberg.com/apps/news?pid=20601039&sid=a62_boqkurbI

Michael