Barracade the presses.
Excellent article. Problem is that most Joe Sixpacks are unable to decipher exactly what this means.
What is most ironic about the Fed monitoring inflation expectations is that they are manipulating the main measure of those expaectations, which is the TIPS market. Bernanke has said that he is watching TIPS prices as a gauge of inflation expectations. However, in the Fed buybacks, one of the securities that the Fed routinely buys are TIPS.
If those buyers had a choice in the matter they would be foolish to buy treasuries.
The government has the power of force, however, and all of those 401(k) and IRA dollars will be buying treasuries with the "encouragement" of the US government.
The Fed has no way or permission to do an “exit strategy.” It’s only allowed by its boss, the bipartisan political/regulator class constituents behind the politicians, to give the economy as smooth a ride as possible to wherever politicos make it go (the way of debt, for now).
It’s a never ending party...until the liquor is cut off and the music stops. Did you ever believe that a Kenyan foreigner would be anything but a choomster demented spendthrift with the objective of ruining the United States forever