Risk-free return versus free-return risk

Well now,Spainish 10-year government bonds are yielding around 6.7%, given a negative or positive news day or two, versus US 10-year government bonds coughing up the prodigious sum of 1.65%. Confusion reigns top draw as to just how the Spainish government will rescue one of its largest banks,Bankia,that has been grabbing much of the negative headlines for a while now. Over in the UK 10-year government bonds are yielding 1.64%,the lowest on record since records have been kept,dating back to 1703. The current yield on 10-year German government Bunds is a paltry 1.37%. This so-called flight to safety,many believe, reflects investor worries about more deflation,but a surprise when all is said and done and government printing presses finally go tilt could be just the opposite of what the safe haven crowd expects.