Fed Statement: We're going to buy long term Treasuries

The Fed announced today that it will buy up to 300 billion of long term treasuries over the next six months (full text here). Here's two articles that are pertinent to the Feds statement:


A bit more to worry about; foreign demand for long-term Treasuries has faded: - Brad Sester at Follow the Money. As the trade deficit narrows, surplus countries have less dollars to recycle into the U.S. at exactly the same time the U.S. needs more financing.

Caution On Quantitative Easing (QE):- Karl Denninger at The Market Ticker. This is a pretty scary scenario...