
Who's Propping Up the U.S. Treasury Market? - rmm
http://www.thestreet.com/story/11595827/1/whos-propping-up-the-us-treasury-market.html
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nhaehnle
This is a terrible article by somebody who obviously has no clue about the
function of the treasury market and how it is managed in cooperation of the
Fed and the Treasury.

The best status quo descriptions of how this market works tend to come from
the Modern Monetary Theory school in economics. For a popular explanation, see
e.g. [http://pragcap.com/understand-the-modern-monetary-
system/und...](http://pragcap.com/understand-the-modern-monetary-
system/understanding-modern-monetary-system) and certain chapters of this:
[http://www.neweconomicperspectives.org/p/modern-money-
primer...](http://www.neweconomicperspectives.org/p/modern-money-primer.html)

As an additional benefit, the writing of the MMT people is enjoyably concrete
and solid. When I read other sources on financial markets, I always feel as if
the authors were describing some weird ununderstandable magic to me. Something
that is not and should not be understood. MMT provides a refreshing
alternative to that which seems to match up very well with all sorts of
technical descriptions you can pick up from the Fed and Treasury itself.

------
valuegram
"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."

Really? Something has to be done with wealth. While the U.S. has a substantial
amount of debt. It is in better shape than many other countries. Because of
the global turmoil, treasuries of countries that aren't in danger of eminent
collapse are selling at record lows. Germany auctioned off a round of
treasuries with negative yields recently:
[http://online.wsj.com/article/SB1000142405297020412420457715...](http://online.wsj.com/article/SB10001424052970204124204577150311730396748.html)

I doubt Bernanke is propping up the entire world's treasuries. Your "man
behind the curtain" theory is fun, and might help drive traffic, I just hope
nobody takes this seriously.

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aychedee
Everyone? No seriously. Pretty much everyone is. Any country with a surplus of
dollars pretty much has nothing else useful to do with them.

------
maybird
America is deep in debt, but its economy is doing comparatively well.

