The ultimate bubble: Treasuries (T) bubble coming?

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Concerns are rising about a potential treasury bubble, particularly following a significant decline in foreign purchases of Fannie Mae and Freddie Mac securities, which may signal future challenges for U.S. treasuries. The discussion highlights the possibility of a dual currency system in the U.S., similar to Europe, due to greater confidence in the European Central Bank compared to the Federal Reserve. There are fears that a lack of government borrowing capacity could force politicians to address fiscal irresponsibility, but skepticism remains about whether meaningful budget cuts will occur. The private sector is actively deleveraging, while the public sector continues to accumulate debt, raising questions about the long-term implications of these trends. Ultimately, the Federal Reserve's ongoing purchases of treasuries are expected to contribute to inflationary pressures.
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Is the ultimate bubble, the treasury bubble coming? Was foreigners' markedly decreased purchase of Fannie Mae and Freddie Mac securities, a harbinger of the future for treasuries? Would the resultant lack of government ability to borrow be what is required to deleverage politicians? Possible dual currencies here, like for Europe, since there is greater faith in ECB than our Fed? Possible U.S. borrowing in eurodollar and yen denomination securities overseas? Is this the worse case scenario? Would a U.S. budget deficit less than $1 trillion, and other fiscal conservative measures, send the right message to creditors, both domestic and foreign? Or is it the same old spend and spend (code word for debt); what did the vote on bail out indicate? The private sector is deleveraging; but not the public sector. A generation (25 yrs) for the excesses of the last 25 yrs, to be deleveraged? Good luck to all of us
 
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The federal reserve will buy them. They already do. And we will have more inflation.
 

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