Ben is buying like a mad man. Just the slight indication of Ben pulling back will cause interest rates to rise. Ben says publicly he knows how to unwind QE in orderly fashion but I don’t see it.
Reagans genie in the bottle was the ability to have his FED chairman LOWER the interest rate to stimulate the economy....now what do we do?
It worked for Baraq as long as he needed it to - they were able to generate enough Baraqqi/Bernanke/Geithner minibucks to fund an election-winning amount of entitlements.
By 2016 I think it will look a LOT different.