Could the Weimar Hyperinflation Happen Again in America?

I have read several times in this thread that nobody is buying US Bonds. (Specifically China) THis is not true at all. In fact, they are buying them at a record pace.

Besides, it's all a shell game anyway.

China still buying record amounts of U.S. bonds: report | U.S. | Reuters
The newspaper said China had little choice but to keep pouring the bulk of its growing reserves into U.S. Treasuries, which remains the only market big enough and liquid enough to support its huge purchases.

This I think is more of a confidence trick and a way to China help it self. How long will or can it continue?


Here is another story to view the other side...
US bonds sale faces market resistance - Telegraph

How about this one... Fed buying bonds!!! - What does this mean?

Check the date and see how it matches the first link with China buying debt...
US Fed buying bonds not real source of risk

From the Telegraph article:
From the Asianews Network article

Interesting article on US employment, or lack of:

BLS Jobs Numbers Contradict BLS Jobs Numbers -- Seeking Alpha

Quote:

Originally Posted by Atilla Banks are not worth their share values

This is the gamble the governments have taken. This is the reason we're in the sh1t.
Aren't they worth their share value?

The banks market their structured assets to model at a time when they were desirable in the market (inter bank anyway) and then leveraged based on the overvalued assets until they were geared to the hilt... Thy were making so many guineas from the complex derivs and these other bloody synthetic credit products that everybody inc shareholders were bathing and they just wanted more and more money until their deposit/loan ratios were (as the auditors should have picked up :-S) indicating a risk of continuing as a going concern. These problems were ignored. Then bang... everything blows up and they got rumbled factoring in sketchy debts into their structured assets and they all have to be written down. Net affect? Less assets, higher gearing etc but they are so ingrained in our way of life it's impossible for them not to produce a massive income. So QE sorts the balance sheet to restore confidence in the sector which can be measured by share price as an indicator of demand (or has share price risen due to changes in equity? the arabs pulled out of barclays at a loss remember).

All depends on how you look things. I can't see them ever falling if everyone continues to ignore the elephant in the room. Not until it's too late anyway.

Good post. And what did central banks do with the 'toxic assets'? They basically created a hedge fund with printed money which is in our, but also our childrens names. China et al are involved in this printing ponzi scheme to add confidence to the market in the HOPE (I hope) that they will stimulate the economy. It's a one way bet on recovery.

It pains me to watch all the intellectuals who get carried away and jump on the gravy train. Don't judge Bernanke and co now; judge them in a year, or two years or longer. They are prolonging the crisis. I could go into a job tomorrow in the Fed or the Boe or the ECB and just print money.

The fact still remains that never before in history has this type of operation worked. Japan tried the same thing in the 90s but the difference there was that they had a high level of savings and the government had large reserves. It took them 15 years to show any growth or stability.

We're doing this with monopoly money. They should just pull Madoff out of his cell to act as an advisor.

Ah but the difference is that this is a coordinated global effort. I think it's an equity tightrope walk with a very short balancing tool. Also, could the fact that there is a sigle European currency as opposed to a million not have an impact?