Who Is Mainly Buying U.S. Treasuries?

From Jesse’s Café:

Personally I think the Fed is buying across the yield curve to affect interest rates, and Treasury takes care of stocks and commodities through the Exchange Stabilization Fund, but who can say without the power of wiretap, audit, and subpoena?

If this is price manipulation, no matter the intentions or beneficiaries, it is likely that it is mispricing risk in a big way, and will eventually will fail, and that its failure will cause a great deal of pain in the real economy for innocent bystanders, and will end in tears. And when that time comes, expect those who created the crisis to make you another offer that they think you cannot refuse.

You decide what is most likely, and what needs to be done about it, if anything. More than a few people are wondering at the lack of response from the people in various nations, particularly in the UK and the US.

And in this slow descent into madness, the worst is yet to come.

http://jessescrossroadscafe.blogspot.com/2010/01/who-is-one-big-bidder-for-us-treasuries.html