Chile Forum

terra nullius wrote:This will extend the average maturity of the securities in the Federal Reserve’s portfolio..."

eeuunikkeiexpat wrote:Commodities getting destroyed, especially copper. Dollar and bonds up but not nearly to the degree copper is down. Shades of 2008 or just a raid by TPTB as they herd the lemmings into the dollar before they pull that plug?

terra nullius wrote:The FED's official FAQ's regarding the "Maturity Extension Program and Reinvestment Policy":

Under the maturity extension program, the Federal Reserve intends to sell $400 billion of shorter-term Treasury securities by the end of June 2012 and use the proceeds to buy longer-term Treasury securities. This will extend the average maturity of the securities in the Federal Reserve’s portfolio..."

greg~judy wrote:<snip>
the "twist" caused the $fiat$ to rise and markets/commodities to fall
but, the market junkies want another fix - desperately...
thus, QE~x is inevitable...
<snip>

Fed seen unveiling QE3 bond plans by summer
Mortgage-bond purchases could begin this spring, analysts say

A growing number of economists, analysts and bond investors think the Federal Reserve will announce another massive bond-purchase plan by the middle of the year, if forecasts for persistently high unemployment and slowing inflation come to fruition.
...

There’s debate about how such a program from the Fed will work, but the market’s sense is that someone needs to do something, and the U.S. central bank seems to be the only institution in the country willing and able to take steps to support the economy.

Money managers and strategists say the Fed will have enough reasons — domestic sluggishness, lack of action from Congress and the White House,simmering debt problems in Europe — to begin a third round of quantitative easing, dubbed QE3.

“We have an activist Fed that’s chafing under ongoing weakness in the housing market and chronically high unemployment,” said Bill O’Donnell, head of Treasury strategy at RBS Securities. “By the summertime, we’ll be thinking about or even looking at a QE3. It’s reasonable just to do something. It’s very clear that Washington isn’t about to step up with some bipartisan grand plan, and something will need to be done.”

Bond dealers told the Fed they see a 60% probability that the central bank will buy more bonds within a year, according to the results of the Fed’s survey of its 21 primary dealers released Wednesday.

<snip>

regioncentralX wrote:Just to revive this thread,

I just noticed the dollar/peso this evening has just slipped below 500 after an extended run over 500. All gifts eventually stop giving. And this when bonds are over 143 and the dollar index is over 80? Of course copper is over 3.60. All in all not a good sign of what lies ahead for those who hold and convert from dollars.