You are right Munchy- if QE ends treasury rates rise and the...

You are right Munchy- if QE ends treasury rates rise and the bond market bubble will burst. That's something they can't let happen as that is the real issue the Fed has to consider when deciding monetary policy. I don't think they can ever ease. That's why physical gold demand is at record levels at the moment. The gold price reflects the derivative market and therefore is not reflective of the voracious buying that's actually occurring of physically gold.