“We are not, however, convinced of the sustainability of the Treasury rally (ten-year yields fell about 50 basis points in response to the news — very similar to the move in the gilt market). However, the scale of the Fed’s proposed purchases of Treasuries (relative to the size of the debt and the deficit) is much smaller than the Bank of England’s purchase (it would have had to be well above $1 trillion to be comparable). In addition, we are not convinced that we are headed for deflation and we worry about the longer-term inflation implications of these purchases. “–RDQ Economics
Hey RDQ, what makes you think Ben wont double/triple down to $1 trillion?
The more the feds spend, the more worried Americans should be and the more they should save.
