Who's Propping Up the U.S. Treasury Market?
NEW YORK (TheStreet) -- The U.S. Treasury market is the biggest financial mystery today.
Much like the proverbial "lead zeppelin" defies the laws of physics, the current status of the Treasury market defies all of our financial fundamentals. It is a market that cannot exist, and yet it does.
Previously, my own writing has focused upon one particular aspect of this absurdity: the highest prices for U.S. Treasuries at a time of maximum supply. This, in itself, is an absolute financial contradiction. The highest supply in history directly implies the lowest prices in history, for every market in the world -- except U.S. Treasuries.
But that is merely Act One of this Theater of the Absurd. These maximum prices are occurring at the point in history where the U.S. has never been less solvent. This also directly implies that U.S. Treasuries should be fetching the lowest prices in history -- as is occurring with their deadbeat counterparts in Europe.No one has been able to explain this ultimate financial contradiction, and so I have previously done so myself. My solution for this conundrum was based upon the Holmesian Principle of logic asserted by Sir Arthur Conan Doyle: When you eliminate the impossible, whatever remains (no matter how unlikely) must be the answer. In applying this principle to the logical/financial contradiction of the U.S. Treasury market, I was left with only one possibility: that B.S. Bernanke is secretly (and illegally) counterfeiting U.S. dollars -- and using those bogus dollars to prop up the U.S. Treasury market. There is simply no other viable theory for how this "lead zeppelin" continues to (supposedly) generate the highest prices in history for this thoroughly and obviously worthless paper. Thus, I originally wrote "Maximum Fraud in the U.S. Treasuries Market" back at the beginning of this year. Since that time I have watched with interest to see if any competing theories would emerge. Obviously I haven't been watching the mainstream media. The same mindless parrots who report on this financial absurdity on a daily basis have never seen anything even slightly unusual about maximum supply and maximum prices occurring simultaneously. So I have been watching other members of the alternative media for such developments.
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