If Bernanke dumps the long side of all Treasuries and exposes the check-kiting operations of the Federal Reserve, thereby sending the value of Treasuries to $0, the short side of his Treasuries will be ridiculously profitable. Bernanke would be lauded as a hero. Why? - National Debt $0 - Personal Income taxes $0 - Mortgage principals near $0 (existing mortgage holders would likely owe only the spread) The losers in this would be some hedge funds and central banks with large Treasury holdings. Nothing much they can do but go belly up though since Hillary Clinton took out the nuclear threat a couple years ago. Let's see if Bernanke has the guts and wisdom to save the economy.