Yes, I think there'll be a QEIII...or an attempt. But there are counter pressures to that as well.
Is the Fed will to buy the entire issue instead of just 1/2? I don't think they are. I think they know that would be criminal malfeasance even on their jaded terms.
The other potential, maybe more likely, is that the US Congress will soon prevent the ISSUANCE of that much debt...cut 'em down several 10% notches every time they talk.
The Fed has been buying everything in sight, by the ton. Those days are coming to an end.
Then, POP! Debt Deflation.
Bill Gross Thinks This Recovery Is Not Self-Sustaining And That Our Low Savings Rate Is A Threat
"However, Gross says the biggest long-term threat to the economy is not one often mentioned: it's America's negative net savings rate of 1-2%. "Basically the U.S. is not saving enough money to replace its own capital from the standpoint of depreciation and potential investment," he says."
If it continues, this is a recipe for disaster, he concludes: "Ultimately a country can't grow that way going forward."