Today's page on the Mish site bears the scary header: "The Fed Is Terrified".

Mish proceeds to explain rules, which he knows very well, to arrive at the conclusion that FED needs more treasuries, or at least "more than government will need to spend". This, by the way, is exactly what I said they will do in my comment to "Fed Balance Sheet" yesterday.
http://fakeben.com/node/179 [1]

Poor Mish.
The way I see it, there are only two possibilities:

a) Mish is working for the FED, and his job is to help the FED to remove the inflation expectations, so that the theft of the century can occure while we all wait for our money to increase in purchasing power through catastrophic deflation that FED can't control, because it just can't print enough money or it can't send that money to who it wants to.

b) Mish never cheats. Because he never cheats, he is like a child, playing his paper game, and is genuinely terrified that the rules of the game prevent the movement of the chips across the board, except as prescribed. He believes these rules. He isn't questioning who and why has created the game and wrote the rules. Even though he had heard it many times, he refuses to believe that the current "system" isn't a system at all but a farce, a "paper economic board game", where adults can interfere at any moment by bringing in more chips, moving them across the board when and where desired, and rewriting the rules as they realize that the rules they wrote yesterday won't let them win today.

The Fed Is Terrified !
Sure it is.
Just like anybody else running their own circus.
What if the lady in the box is really sawed in half? It must be really scary to run the circus!