The TBAC (Treasury Borrowing Advisory Report) is usually quite dry and boring.
Well, it is this time too.
The presenting member stated that the market expects the Federal Reserve to purchase $100 billion per month, as well as $30 billion per month in MBS reinvestments. This will total $1,560 billion in Treasury purchases over the next year. The member stated, however, that market participants believe the Fed will leave the status of QE2 open ended, with purchases ultimately dependent on economic conditions. The presenter also noted that the program should last six months to two years.
That’s direct monetization of the entire Federal deficit.
I hope you like really expensive commodities and everything made from them….. if this is actually done, you’re going to get them in spades, way beyond what’s currently baked into the cake.
Heh Ben! How ‘ya like this? You know, you can see it coming, but by the time you do, it’s too damn late to do anything about it…