"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...
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.
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.
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.
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[ 3.5 ms ] story [ 14.1 ms ] threadReally? 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...
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.
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... and certain chapters of this: http://www.neweconomicperspectives.org/p/modern-money-primer...
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.