i think we must face it ..........., page-30

"When the bond market finally realizes this (in one of those "Oh, no!" moments), the "return-free risk", as Jim Grant puts it, of owning treasuries at present prices will dawn on everyone at once and US treasuries will drop like a proverbial rock."

SaturnV, BH!

How do you interpret Japan's recent statement (i believe you posted the link Saturn) that they are considering forgiving some of America's debt? Doesn't this send a message from Japan that they will support the US bond market at all cost in order to prevent a USD collapse?

The main risk to the bond market as I see it, is Japan and China recyling less USD into bonds simply because they are now receiving far fewer of them as Americans can no longer afford to buy their exports.

Rowingboat.