This is a hefty cost for safety and liquidity as it implies an erosion of purchasing power over time. But it also represents a significant savings to heavily indepted US. This quantitative easing continues to exert downward pressure on yields. You can argue it is necessary but there is a clear result here. The fact that Bond yields stayed depressed for most of the second half of 2011 shows that what they are doing is working in many ways....
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