On Sept. 13, the markets waited with baited breath for Fed Chairman Ben Bernanke to usher in the Fed's response to save what little is left of the American economy. In his announcement, Bernanke did not fail, as the central bank has chosen the path of eradicating all traces of a once great nation and empire.
Chart courtesy of Zerohedge
What this means in laymans terms is not the introduction of QE3, but instead the implementation of QE4evr.
Operation Twist never really ended for the Federal Reserve, which was the purchasing of $45 billion in MBS per month. Now, the central bank will be buying an additional $40 billion, which equates to $1 trillion per year, and do so until unemployment falls to levels mandated by the Fed Charter (around 6%).
Since the U.S. does not have an industrial and manufacturing base anymore, and buying mortgage bonds (MBS) when people can't afford to buy new or used homes on the market, means that there is only one truism that will result in the Fed's actions today.
Inflation. Lots of inflation. Inflation forever.