Yes, but what does that have to do with free capitalism? He actually bet against Bernanke and lost. At some point, the Fed will run out of ink and the market will set the rates. Bernanke can keep fiddling for awhile, but eventually, someone will stop him from completely destroying the dollar. In a market system, reality always wins in the end.
The point of my post was that at some point, bond buyers will dry up. ( as of 6 months ago, they basically already have. Bernanke has been the largest buyer with QE2). If Bernanke goes ahead with QE3, then the rates will still remain low for awhile longer. There will come a day, however, when you least expect it, that the old idiom "It's never been like this before" will finally be realized. At that point, interest rates will go parabolic. Gold will go parabolic. Stocks will fall off a cliff, no matter what the company's bottom line is.
Someone at some point is going to look at $14trillion in debt now and another $3 trillion was just added in the debt ceiling, and they will say "To hell with this", and just bail out. The market will act as a free market then. Bonds will be offered and there will be no buyers even with a 50% interest rate.