U.S. Treasuries and the Mythical Land of Us: Opinion
NEW YORK (TheStreet ) -- If ever we needed proof of the saturation-level brainwashing to which the Western masses are now subjected (and to which they have succumbed), there is no clearer evidence than the U.S. Treasuries market.
The U.S. economy has never been less solvent in its entire history, meaning the U.S. Treasuries have never been less valuable. The new supply of U.S. Treasuries grossly exceeds any level of paper the U.S. has ever pumped into global markets before. And yet we see (alleged) buyers being permanently willing to pay (by far) the highest prices in history for these mountainous stacks of paper.
However, this is just the beginning of the absurdity here. We're told that the U.S. government can continue to obtain these record prices despite the fact that the two largest buyers of Treasuries over the past decade (China and Japan) have virtually stopped buying. Indeed, for more than a year China has been a net seller of Treasuries. This collapse in demand also implies the lowest rather than the highest prices in history for U.S. Treasuries.
Amazingly, we have now journeyed beyond absurdity. With U.S. Treasuries interest rates having literally dipped into negative numbers on several occasions already, absurdity becomes insanity: "buyers" supposedly paying for the privilege of lending money to the U.S. government.
Under the best of circumstances this would be perverse and insane. Borrowers do not get to charge lenders interest when they borrow their money. Indeed, the simple fact that this point even needs to be made -- to an adult audience -- is proof of how this saturation propaganda has effectively rendered the majority brain-dead.
Lenders do not pay interest to borrowers when they lend them money.
This is a tautology of commerce which is true under the best of circumstances. However we are far from "the best of circumstances." The United States has never been less solvent, meaning its bonds have never been worth less (worthless?). And now we have the ultimate insanity.