Bill Gross on QE3

Gross: QE3 likely to take form of “extended period” language or interest rate caps on 2-3 year Treasuries. So, the primary dealers will continue to buy Treasuries at auction and then sell them to the Federal Reserve at a premium no less. The Fed must keep rates low so that the government can service the debt and keep the ponzi going. This action will continue to devalue the "dollar" versus precious metals.

Honest_Money