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To: Tommaso who wrote (149951)4/22/2011 11:37:15 PM
From: ChanceIs2 Recommendations  Read Replies (3) | Respond to of 206093
 
>>>I cannot tell from your post whether you agree or disagree with the statement above.<<<

TeeVee wrote...No QE 3 is needed and here is why. About $1.2 trillion in treasuries are due over the next 12-18 months and the money will be printed to redeem them.

I disagree. The redemptions WILL NOT require new money printing, as I argued. Rather just a roll out. Many argue that QEII will end and then reemerge as QEII Lite with the Fed keeping its balance sheet at its current level by simply rolling over the current holdings.

Financing the new deficits will take additional customers at auction or more money printing. With a forecast deficit of $1.6 trillion this year, I am not expecting the money printing to be put on hold. I think that we will have $1 trillion plus deficits for the nest five years at least. Of course the economic system can't survive at those levels of deficits.