MADRID, Spain (PNN) - January 3, 2013 - With Spanish 10Y yields hovering at a relatively healthy 5%, having been driven inexorably lower on the promise of ECB assistance at some time in the future, the market has become increasingly unsure of just who it is that keeps bidding for this stuff.

As the Wall Street Journal notes, Spain has been quietly tapping the country's richest piggy bank, the Social Security Reserve Fund, as a buyer of last resort for Spanish government bonds - with at least 90% of the €65 billion ($85.7 billion) fund being invested in increasingly risky Spanish debt.

Of course, this is nothing new. The Fascist Police States of Amerika and the Irish have been using quasi-government entities to fund themselves in a mutually-destructive circle-jerk for years - the only difference being there are other buyers in the Treasury market, whereas in Spain the marginal buyer is critical to support the sinking ship.

The Spanish defend the use of pension funds to buy bonds as sustainable as long as it can issue bonds - and yet the only way it can actually get the bonds off in the public markets is through using the pension fund assets.

The pensioners sum it up perfectly. "We are very worried about this, we just don't know who's going to pay for the pensions of those who are younger now."