The Federal Reserve will amplify record accommodation tomorrow by announcing $45 billion in monthly Treasury buying that will push its balance sheet almost to $4 trillion, according to survey of economists.
I'm old enough to remember people being concerned that we were spending $25 billion on the Apollo program.
I tell people that too. I'm age 60 and remember when a big tax cut or program was $8 or 10 billion. Pocket change now. If the 'cliff' is solved the market may well tumble if IMMEDIATE spending cuts aren't addressed, not stealing from our grandchildren.
Our country's credit rating is also hanging in the balance, another largely ignored factor.
We don't need the CPI any more; we have the "Personal Consumption Expenditures" Index. And if that doesn't work, we'll come up with yet another index to under-report inflation.
QE4 has had only a few days to work its magic, but since rates have been rising the last couple of days, that means that SOMEBODY sure is selling lots of bonds at the same time the Treasury is buying its 45 billion a month. But I'm sure Uncle Benny will get everything under control eventually (sarcasm alert).