Now I would like to think that this is the beginning but knowing Bernanke I know it is not. This (IMO) is a direct reaction to the Chinese actually selling Treasuries and Japan being the largest buyer of Treasuries from this last issuance. We need the Chinese and they have already stopped buying our longer term notes and shifted towards shorter term and are already jawing about not buying them in the future. Bernanke is caving and trying to entice the Chinese to continue buying with the hope this move strengthens the dollar and whets China's appetite for our bonds.
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