“Bernanke and the Fed are going to reconsider the end of QE, and then decide against it. And eventually, if yields continue to rise (that is, if bond prices continue to fall), Benny and the Fed will up the dosage on the QE. Whatever it takes to keep yields down and interest rates low. Remember, Bernanke and the Fed are convinced that higher interest rates will kill any sustained recovery. Nothing will shake them from that idée fixe. Therefore they will do anything to prevent high interest rates—including walking back this talk of ending QE, and upping the dosage as need be to achieve their goal of sustained, consistent zero-percent interest.”
http://gonzalolira.blogspot.com/2013/06/qe-wont-endit-will-increase.html
Related posts:
Free Speech Limits to Fight ISIS Pose a Greater Threat Than ISIS
Bill Bonner: Why the Crowd Is About to Get Destroyed in US Stocks
Bill Bonner: US Market Crash Alert!
Syria and the Albright Syndrome
The Fed Has Failed, Failed, Failed
Where, Oh Where Are People Going to Go to Escape the Clutches of Expanding Government?
Update on the EU's proposed financial transactions tax
Ron Paul: Expanding Covert Warfare Makes Us Less Safe
Putin, gold and silver: What you need to know right now
How Do You Like Your Central Planners, Bookish or Flamboyant?
Jim Rogers Interview with NewsMax TV 20 May 2013
The FISA Reauthorization Only Boosts Big Brother
Bill Bonner: How Low Can Gold Go?
Is Pakistan preparing to get out of US war on terrorism?
Supreme Court: Towns Must Stop Treating Residents Like ATMs