patrick.net

Ben is fighting this...Foreign auctions is falling alot. He can't let it get too low. You have the smart money leaving and foreigners aren't buying. He has to give bond holders something. The problem is that stocks take losses so now losses form either way. So he saves the bonds but stocks fall and then he saves the stocks but bonds fall. "The losses are NOW here!"

Bubbabear says

Foreign auctions is falling alot.

Why does it matter whether the Chinese central bank buys the bonds or the Federal Reserve does? In fact it's better for the US as it means a lower dollar. They finally managed to shake the peggers.

US bonds are rock solid compared to bonds from Japan, Europe or China for that matter.

If the US was bankrupt, everyone else would be. Investors can't flee if everything else is more risky. These guys are not newbies at financial repression. They play a game more subtle than just 1st degree overspending.

Heraclitusstudent says

Why does it matter

"You have the smart money leaving" and foreigners aren't buying

Interest rates is what pushes the bond price down and those holding get losses. So Ben stops buying to get rates to fall but stocks fall. So either way one side gives now that concerns Ben in the short term, One side.