The implicit notion–extant on both ends of the Accela Corridor—that the present financing arrangements for the $31 trillion of publicly held US Treasuries represent the natural order of things in the financial markets is just damn nonsense.
And that’s to say nothing of the brobdingnagian task ahead—finding a home for another $142 trillion of US Treasuries by mid-century at a sustainable yield that does not blow the bond pits to smithereens.
The fact is, the existing global market for USTs is a wholly artificial, jerry-built construct arising from the money-printing central banks of the world, led by the Fed. The latter have sired three forms of artificial demand for USTs...
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