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Originally Posted by FARMER
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I don't think QE is ending anytime soon (actually, I think it's impossible. The US has far gone past the Minsky Moment. The Fed is the single largest buyer of Treasury's and with the Fed running $1+ trillion deficits/year [and that's not counting the $16+ trillion on-balance-sheet debt and $70-100 trillion in unfunded liabilities] there is no way for the Fed to end QE. Bernanke et al. have been bluffing that they "may taper" ever since they started QE).
Anyways, I think in time even with the continuation (and expansion) of massive money printing ie. "Quantitate Easing", interest rates will rise because the US budget deficit will continue to grow, total funded and unfunded liabilities will grow and investors will start to move out of US debt. The largest foreign buyers (ie. China) have already begun to diversify their portfolios (into gold, Euro bonds, etc.).
And as for the US "recovering," record numbers of people on food stamps (est. 50 million) doesn't sound like much of a recovery to me.
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4 years of bull market in stock since March 2009 tells me it is a economic recovery. People have been talking down the U.S economy forever and you know what they lost so much money either by shorting or missed the huge rally. I don't give a damn about people crying on 60 minutes about losing their houses. I am sorry if that sounds cold but stock market and U.S. housing market tell me it is a full blown recovery. Bernanke is doing the right thing by ending QE so we don't end up with run-away inflation.