Reply #36: No, it doesn't and no it isn't

[girl gone mad]

Bondholders can always sell their Treasury bonds when they desire to do so. They may take a loss, but that's neither here nor there.

When the bondholder sells to a bond dealer, the dealer creates money in the form of a credit, using the bond as leverage.

If you want to argue that Treasury buying up bonds is inflationary, you need to explain why exactly you think it's inflationary. "increase in dollars relative to bonds" is meaningless since the bonds are just as liquid as the dollars at all times except in a liquidity trap (you got that backward) and they are even more essential for the facilitation of credit creation (thus inflationary) than dollars.