"Do you really think".....Don't be silly, of course not.
Equities have been goin' up big and down big, all the while rates keep goin' lower.
That doesn't happen when the marketplace sets rates.
It happens when Central Banks poor money into the markets.
What I do think is there is so much hogwash coming out of the "dozen people (maybe)" that Crystal Gayle must be selling them her cut "Don't it make my brown eyes blue".
Lew and Geithner and Yellen and Bernanke and dare I say Obama must be grinnin' ear to ear. As Treasury told Kiel Bass, they are going to trash the dollar. And as Schiff says, when inflation finally gets here it is going to be ferocious. Hey middle class boomers...your lifetime of savings (which you have invested for retirement) is exactly where society intends to get the dollars to pay back the loan for the excessive standard of living of the last 50 years. Have a nice retirement! The UK just fired a nuke in the currency war. And the biggest debtor societies will be the biggest loosers. And guess what country is the worlds biggest debtor.....
And "Real poverty" has been created through fractional banking, an unbacked currency, and forced inflation through excess fiat creation. The last 50 or 60 years has been characterized by money center banks using "their FED" to effectively steal the hard work, innovation and productivity from middle class Americra. With each fiat dollar they create, the inflation it causes enables the concealment of real wage contraction. You are correct about the creation of Real wealth merenkov, but unfortunately the real wealth that we created over the last half decade went into the pockets of a relative few. But not to worry, innovation is the product of education...and we totally frittered that lead away.
"will foreigners keep buying USTs"
Of course they will.
Foreign countries want to do business with and sell their wears to the US.
AND so long as your neighbor wants to "keep up with the Jones" AND he has a dime's worth of equity or a nickels worth of credit to spend on that goal, then foreigners will be buying UST's.
2008 gave you a pretty clear picture of what happens to the trade balance when the US consumer stops spending cold turkey.
We collectively have a LOT more equity in our collective "reserve currency house" to peess away before we stop spending cold turkey again.
That equity will become apparent when the upcoming Nuclear QE bomb goes off.
foreigners will keep buying USTs until the US Taxpayer is tapped out.
And with an annual GDP of some $18T and $20T of direct debt and over $100T in assumed liabilities going forward 20 years that time may or may not be close at hand.
Corporate America's "K" street will insure that foreign investors are repaid before the REALLY big creditors get theirs...Social Security and Medicare.