---
title: "$4 Trillion, Massive and Open-Ended"
url: https://independentstockanalysis.com/4-trillion-massive-and-open-ended/
description: "“The Federal Reserve will amplify record accommodation tomorrow by announcing $45 billion in monthly Treasury buying that will push its balance sheet…"
published: 2012-12-11
updated: 2012-12-11
---

# $4 Trillion, Massive and Open-Ended

Published 2012-12-11

Posted on

by

J.J. Butler

“The Federal Reserve will amplify record accommodation tomorrow by announcing $45 billion in monthly Treasury buying that will push its balance sheet almost to $4 trillion…“It’s going to be massive and open-ended in size.”” The headline was especially shocking: Fed Seen Pumping Up Assets to $4 Trillion in New Buying at [Bloomberg](http://www.bloomberg.com/news/2012-12-11/fed-seen-pumping-up-assets-to-4-trillion-in-new-buying.html).

Fed Policy Decision Is Key For Gold And Silver This Week says [Tim Iacono](http://seekingalpha.com/article/1053861-fed-policy-decision-is-key-for-gold-and-silver-this-week).

Central Banks Ponder Going Beyond Inflation Mandates at [Bloomberg](http://www.bloomberg.com/news/2012-12-10/central-banks-ponder-going-beyond-inflation-mandates.html).

“Central banks are creating the ultimate bubble in money itself…Each time deflationary forces re-assert themselves, offsetting inflationary forces (monetary stimulus in some form) have to be correspondingly more aggressive to keep systemic failure at bay…The end game is an inflationary/currency crisis*…”*Seventy five pages of goodness by [Thunder Road](http://www.scribd.com/doc/116141019/Thunder-Road-December).

If a Trillion dollar platinum coin doesn’t illustrate the absurdity of fiat…[Econbrowser](http://www.econbrowser.com/archives/2012/12/trillion_dollar.html).

Charts: [Silver](http://stockcharts.com/h-sc/ui?s=$SILVER&p=W&yr=5&mn=0&dy=0&id=p39870442257&a=269443103) and [gold](http://stockcharts.com/h-sc/ui?s=$GOLD&p=W&yr=8&mn=0&dy=0&id=p29970301958&a=269442462).

Commodity snapshot: [Bespoke](http://www.bespokeinvest.com/thinkbig/2012/12/10/bespokes-commodity-snapshot.html).

Meanwhile, in the real economy:

Positive numbers out of China providing some support to risk assets at [Sober Look](http://soberlook.com/2012/12/positive-numbers-out-of-china-providing.html). GM, Ford monthly sales rise in China on strong car demand at [Auto News](http://www.autonews.com/apps/pbcs.dll/article?AID=/20121206/GLOBAL03/121209916/gm-ford-monthly-sales-rise-in-china-on-strong-car-demand). The tie into crude: “The figures are another confirmation that Chinese oil demand is accelerating again, and there are good reasons to expect that it will carry on growing strongly next year.” [Reuters](http://www.reuters.com/article/2012/12/10/markets-oil-idUSL4N09K15G20121210)

Goldman’s Top Economist Explains The World’s Most Important Chart, And His Big Call For The US Economy at [Business Insider](http://www.businessinsider.com/goldmans-jan-hatzius-on-sectoral-balances-2012-12).