Who's Propping Up the U.S. Treasury Market?

The second absolute rebuttal to this nonsense is something that the media drones have regularly been reporting on for the past three years (out of the other side of their mouths): the "destruction of wealth" that has taken place before/during/after the Crash of '08. Obviously the trillions of dollars that have been destroyed (primarily through listening to the absurd financial advice dispensed by the mainstream media itself) are yet another "minus" in the demand column for U.S. paper.

All other supposed explanations for the obvious and massive fraud currently taking place in the U.S. Treasuries market fall apart because they cannot account for "record demand" for U.S. Treasuries, when literally every component of that demand has partially/totally evaporated. I repeat: There would not/could not be enough buyers for U.S. Treasuries at any price -- and so merely manipulating those sticker-prices with interest-rate swap manipulation is irrelevant.

I assert yet again that there is only one theoretically possible explanation as to why the U.S. Treasuries Ponzi-scheme has not already blown up like Bernie Madoff's fraud: B.S. Bernanke is fraudulently counterfeiting U.S. dollars (by the trillions) to prop up this market. It is not only the only possible explanation for the Treasury market itself, but the only explanation for the simultaneous bubble prices of both U.S. bonds and U.S. equities.

A lead zeppelin would require an enormous amount of lighter-than-air gases to keep it afloat. The dual bubbles of U.S. equities and U.S. bonds similarly require a massive amount of capital to keep them from immediately popping. As there is no possible legitimate source for such capital anywhere on the planet, then Holmesian logic dictates that these bubbles are being propped up with illegitimate capital. Enter B.S. Bernanke, and his secret money printing.

I remain open to other rational explanations to this absolute financial contradiction. Absent any new (and viable) proposal, my theory stands alone.

This commentary comes from an independent investor or market observer as part of TheStreet guest contributor program. The views expressed are those of the author and do not necessarily represent the views of TheStreet or its management.

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