[NELSON111]

>>>QE undermined the economy by creating uncertainty in the currency and encouraging malinvestment. QT is not too much fun but the only way to undo QE.

Agreed...but it is still a hidden interest hike that is bringing down the stock market...and that was the point of my post.

Plus, if we head back towards recession later this year or next (and there are some indications...not a lot but some...that we may)...QT is going to stop and we may be talking of QE 4...or whatever they are going to call it.

Bottom line is...I really don't think we've heard the last of QE. I bet we see another form of it within the next few years.

[palmer]

I agree that QE will be back. One thing we do know from today on the Hill is that Congress will NEVER cut spending from now on, and the only ways to reduce the deficit are economic growth, inflation / QE, and/or default. Trump chooses growth, the next president will probably choose #2 with encouragement from Congress.