amillett,

I cannot follow your arguments. Bonds are beeing sold, much more can come, here I'm with you. But why sell gold because of that?

Sell off in bonds means much higher interest rates. higher interest rates means much more trouble for economy and the whole debt problem (which there is no solution anyway imho). I'm not sure that the USD is the place to be when there is a system breakdown... and the only thing the FED can do is to inflate even more.

Japanes stocks are not rising because of the strong japanese economy. Japan is going the US-way and is weakening the Yen, very successfully. They are just inflating the stock market. Nikkei looks like a flag stick.