The truth is the Fed doesn't have many short-term Treasuries left to sell.  Evans said the $45 billion a month should last at least a year.  That's $540 billion worth of what he indicated would be a combination of mortgage-backed securities and Treasuries.

Well, you cannot sterilize $540 billion, in addition to the $480 billion dollars that you are already doing, when the Fed's balance sheet shows that they are almost out of short-term Treasuries.  So this will be an unsterilized, open-ended, double-down version of QE3, and that's why you are seeing gold and commodities soar.

Comments: Be the first to add a comment

add a comment | go to forum thread