Qe3 Anyone? It May Very Well Be A Christmas Gift For Pm.

The problems that the Fed can address are ones of minor direction changes. What we have today looks very much like a severe systemic problem that minor tinkering will not and cannot solve. That really isn't the Fed's job anyway. Congress and the White House are where these problems will be solved. It will not be an event but a process and that process is likely to require several years... IF they do what is needed. If they do not do what is needed, then these problems will not be solved and we will be suffering their effects for a very long time.

As to another round of QE? Yes, they will try that but like the previous QE rounds it too will fail to resolve the issues that the Fed is trying to confront. Because of their QE efforts, we can expect the dollar to drop and PMs and stocks to go up. Bonds are anyone's guess. Few, if any, of the bond buyers are as yet aware that the US federal government is bankrupt and operating like a Ponzi scheme. They continue to pile into US Treasuries as if they were some sort of "safe haven" and they are not. At some point the bond buyers will be running for the exits en mass and it will be ugly.

Long term, QE will push prices up as the dollar gets closer to the value of paper. Short term, QE could push prices either way.

In the big picture, the EU mess at this moment is affecting and will continue to affect PM prices more than QE will. Until the EU mess goes away, I don't think any QE will have an IMMEDIATE effect of any significance on the PM market.