Bill Gross had a few pointed comments the other day.

The immediate question is who is going to buy all of this debt? Estimates suggest gross Treasury issuance of up to $3 trillion this calendar year and net offerings close to $2 trillion – almost four times last year’s supply. Prior to 2009, it was enough to count on the recycling of the U.S. trade/current account deficit to fund Treasury borrowing requirements. Now, however, with that amount approximating only $500 billion, it is obvious that the Chinese and other surplus nations cannot fund the deficit even if they were fully on board – which they are not. Someone else has got to write checks for up to $1.5 trillion additional Treasury notes and bonds. Well, you’ve got the banks and even individual investors to sponge up some of the excess, but a huge, difficult to estimate marginal supply will have to be bought. The concern is that this can be accomplished in only two ways – both of which have serious consequences for U.S. and global financial markets. The first and most recent development is the steepening of the U.S. Treasury yield curve and the rise of intermediate and long-term bond yields. While the Treasury can easily afford the higher interest expense in the short term, the pressure it puts on mortgage and corporate rates represents a serious threat to the fragile “greenshoots” recovery now underway. Secondly, the buyer of last resort in recent months has become the Federal Reserve, with its publically announced and near daily purchases of Treasuries and Agencies at a $400 billion annual rate. That in combination with a buy ticket for over $1 trillion of Agency mortgages has been the primary reason why capital markets – both corporate bonds and stocks – are behaving so well. But the Fed must tread carefully here. These purchases result in an expansion of the Fed’s balance sheet, which ultimately could have inflationary implications. In turn, nervous holders of dollar obligations are beginning to look for diversification in other currencies, selling Treasury bonds in the process.

Now that they have started down this road .... the so-called deficit hawks will be unable to ever pull away the punch bowl.

Oh sure they will grandstand about it, which gets the MSM coverage. But the votes will be entirely different.

The corporate welfare state has not strengthened the economy or weened corporate America of the public teet ... They are fat, lazy welfare queens of the most dispicable kind. We have zero interest rates and have donated trillions of dollars with no results. As soon as the FED acts as they will raise interest, the economy will tank again. As soon as they cut off bailouts for any of the industries they are propping up, they will fail.

Wall Street is not a measuring stick for Main Street. With trillions pumped into Wall Street is it any wonder the market is rising? So what! ... we are still losing jobs at a record pace ... people will just start rolling off the other end and thus not be counted as unemployed. Interest rates on bonds are rising even while the FED is buying.

I have said before. The bailout is going to make it worse than the collapse.

Gross asks who will buy the debt?

Obviously, the ONLY answer is to "nationalize" or take back what rightfully belongs to the citizenry and was stolen from us - those millions, billions and trillions of dollars which Cayne, Greenberg, Rubin, Thain, and so many others (I believe Greenspan may be included in that gang) who profited from the credit derivatives scam, those leveraged buyout "pump and dumps" and various other Ponzi tontines.

Gross certainly understands the contribution which the securitization of securitization has destroyed the American (and global) economy.

That and that alone will begin to address the economic problems, otherwise the march onwards to the Neofeudalist State continues unabated.

The unholy trinity of offshoring American jobs, credit derivates scams and the leveraged buyout "pump and dumps" can no longer be tolerated at any level.