[Hoodat]

With the economy on firmer footing the Federal Reserve Bank is unlikely to extend its bond-buying stimulus program

This is false on so many levels. First, they imply that QE is a stimulus program. It is not. Second, they imply that a stronger economy removes the need for it. This is not so. The purpose of QE is to provide funding for government deficit spending while keeping interest rates low. The problem here is that deficit spending continues, and at current interest rates being offered by the Treasury, there is no way possible to sell enough bonds to finance $1 trillion in debt each year. It simply is not possible.

There are three possibilities here:

1. The government gets its spending under control so that it does not need to raise huge sums to run its affairs
2. The Treasury raises interest rates to around 20% in order to attract the $1 trillion needed to fund deficit spending
3. expand the money supply by another $1 trillion

   I bet they choose option 3.

[Milhous]

$1 trillion ain’t what it used to be. Better bank on $10 trillion.