I don't know what you mean by conspiracy theories -- it's all documented -- in the public domain. I take it you don't read much in the way of economics.
If inflation were really as high as you imply
I'm not implying anything; I'm stating it! The producer contracts in my area went up by 7%. That is not based on some inference or hedonic adjustment. It is an absolute amount. What's more the processors don't pay one more penny than they have to to keep the farmers in business.
If inflation were really as high as you imply, no one would be accepting these rates for their money.
As Benanke stated last night, even the Federal Reserve doesn't understand why long-term rates stay relatively low. I wouldn't assume you have the correct interpretation.
Like I said, all those tens of thousands of people who buy and sell bonds for a living must all be idiots because they don't realize they're losing more than 2% a year on their investments. Is that what you're selling here? I know enough about economics to understand that most people who think they know more than the markets really don't know as much as they think they do. I also know that anyone who knows more than the market should be extremely wealthy. Are you still working BearWash?
I wouldn't assume you have the correct interpretation.
I could be wrong but when people start buying 30-year notes that yield less than 5%, I'd say that's a pretty unambiguous market signal that the future expectation for inflation is pretty low. Even Bernake would have to agree with that since he has stated on many occasions that he trusts the markets.