QE2 ends tomorrow (June 30, 2011)...What's next?

As I look through articles regarding this, some say it's no big deal while others are preparing for a financial collapse. While I will not speculate on what the FED will do, be it raise interest rates, implement QE3, or sit back and see what happens, I will say that this is lose lose situation. However, I do believe inflation is inevitable.

I imagine this thread won't become very popular as this isn't the sexiest topic out there. I hope I'm wrong, because this is what affects our day to day life. Not politician scandals and nonsense, but money. My hope is that this will help spread awareness of this situation so others may be informed. Perhaps with enough awareness, we the people of the United States could do something to restore our economic sovereignty.

QE2 ends after tomorrows market close. With that said i belive the FED's added a few wind down days, first week of july, but after that you will see the bond mark intrest rate incress to get people to buy US bonds. We will have a economic collapse and we will have a worthless USD. its only a matter of time

Has to be QE3 because there is no plan B or C

Sell the rumor, buy the news ?

As I watch stocks in rally mode this week, I'm thinking Mr. Market has already priced-in the end of QE 2. I'm sure he's delighted that ZIRP will remain in place for an extended period of time, and that QE-Lite, the purchase of treasuries using the principle payments on Fed held MBS will continue to target interest rates on longer dated bond issues well into 2012. Technically QE-Lite is sterilized capital and will not expand the M0 money pool, but this liquidity originated in QE1 & 2 through direct monetization...a small, insignificant detail Uncle Thug and the Fed won't be quick to revisit.

Fed Seen Purchasing $300 Billion in Treasuries After QE2

June 27 (Bloomberg) -- The Federal Reserve will remain the biggest buyer of Treasuries, even after the second round of quantitative easing ends this week, as the central bank uses its $2.86 trillion balance sheet to keep interest rates low.

While the $600 billion purchase program, known as QE2, winds down, the Fed said June 22 that it will continue to buy Treasuries with proceeds from the maturing debt it currently owns. That could mean purchases of as much as $300 billion of government debt over the next 12 months without adding money to the financial system.

While the $600 billion purchase program, known as QE2, winds down, the Fed said June 22 that it will continue to buy Treasuries with proceeds from the maturing debt it currently owns. That could mean purchases of as much as $300 billion of government debt over the next 12 months without adding money to the financial system. - Full Text

When Obama spoke today one of the things he mentioned was higher interest rates. That was the only truth I think i heard out of him the whole speech. I wish he would have gone into the effects of higher interest rates on both private and public debt though.

reply to post by wiandiii


Most Western nations are trying to push for higher interest rates....yet growth is less than 2% and down by approx 17% from this time last year.......dependiing which country you live.