Treasuries Not Safe Enough as Foreign Purchase Pace Slow

It's so obvious even Bloomberg is reporting it.  Foreign investors are shunning US Treasury bonds because they understand inflation is looming, making fixed-income assets disastrous to hold.  Finance 101: when bond yields rise, bond prices decline.

Corollary to the aforementioned axiom: when interest rates rise, the cost of borrowing rises.  The conclusion is that over-indebted nations will be insolvent, if they aren't already.

With foreign purchasing tepid, the Fed has had to step up as the buyer of last resort, via QE.  Which means the US Treasury bond market is a circular ponzi scheme.

http://www.bloomberg.com/news/2013-07-21/treasuries-not-safe-enough-as-foreign-buying-slowest-since-2006.html