I will believe that when I see it. It really amazes me how
the fed night bond whores start buying as soon as the S & P starts printing red in the evening session. That game has the
intelligence of a six grader. The French aren't selling because they got the backing of Obama for Gaddfi. Do you know
why, Sarkozy was crapping his pants at the thought of all those from the Ivory Coast who have French citizenship. The
refugees would flood the welfare system in France!
TBT probably will rise; from $25 to $26. Meanwhile, the Fed and Treasury won't stop debasing the dollar until China and OPEC replace it as world reserve currency. Then, it will be too late, because there will be a flood of dollars out of countries' vaults and there will be hyperinflation. By then it won't matter what happens to TBT; the US will be in anarchy.
How come nobody is bringing up the 900 lb. Gorilla in the room?
Good old fashioned --1970's leisured suited-- S-T-A-G-FLATION !!
The only thing holding up the GDP was Government spending and that HAS to stop. Forget the FED's pump and especially forget the notion that inflation is tame-- BWAAAAAAAAAAAa. Buying a 10 year at %5 below the inflation rate (minimum) is not very smart-- unless of course the FED does it for you and bill's you later.
Let's see. Our budget deficit is 1.5 Trillion. We have (coincidentally?)printed 1.5 Trillion as part of QE1 and QE2. The budget deficit is not being addressed. Therefor QE3 = future budget deficit.
this is absolutely false. if you listened to the "chosen one" yesterday he said that the fed will reserve the option to continue to purchase treasuries as the portfolio warrants. that is a substantial amount of interest and bond maturities to reinvest into the market at his discretion
call me crazy but that seems pretty open-ended to me
I agree with the referenced chart and discussion.
Quantitative Easing 1,2,3 . . . will continue until housing stabilizes. This is all being done to prevent bank failures from bad mortgages. Why do you think it is called 'bank'rupt? FDIC has lulled us into believing it does not happen any more.
Between now and then, the debt ceiling will be raised and the dollar will continue it's slide.
Can the Fed really take up the slack of Central Bank selling of Treasuries? I don't think so. The whole world sees what the Fed is doing (inflating to make it easier to pay off debt).