My friend Ben has strongly hinted that he's ready to purchase another 1 to 2 trillion worth of government obligations. This has brought yields on the 2 year to record lows of about 0.4% and the 10 year maturity to 2.5%.
Needless to say, he will pay for his purchases with nothing more than a bookkeeping entry. To put it another way: after creating 1.7 trillion Dollars last year, he wants to print another 2 trillion next year.
He thinks that inflation is too low and that printing money creates jobs.
I happen to not believe either. So be nice and sell him what he wants to buy !
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