[sefarkas]

How to spot a "crackpot conspiracy hypothesis"

It is likely the government will continue on its spending path until market forces terminate this behavior. The first sign of market pushback will come in the form of a failed Treasury auction. Perhaps such an event has already occurred, albeit covered up by primary dealers buying the shortfall amounts or other slight of hand practiced by the Fed. Regardless, the deficits are so large that at some point, a shortfall will be too large for chicanery to cover.

In the age of the Internet, the number of people that would have to collectively agree to suppress "such and event has already occurred" is beyond imagination.

Go back to Adam Smith. Economic actors act in their own greedy self-interest. The collective acting in ones own self-interest is the best ingredient for a robust economy. No one from the POTUS on down is excluded for the club of people acting in their own greedy self-interest. The basic economic problem occurs when someone (or a group) makes others act in concert with that former group's own greedy self-interest; thus, unbalancing the system.

[hinckley buzzard]

He's talking about primary dealers, banks and securities institutions that buy directly from the fed, and do most of the bidding in treasury auctions. It has almost certainly already occurred that the primary dealers, of whom there are around 20, have borrowed at one fed window and bought treasuries at another. They then resell the debt to the market.