And here comes QE 4.

What, you haven't heard? I am not surprised. The MSM is busy with other things.

What is QE 4? QE 4 is a continuation of Operation Twist. Though QE 4 will resemble Operation Twist, it will be different, that is not identical to it. In Operation Twist, the FED bought long term Treasuries and sold short term Treasuries on its balance sheet. That is why it could be claimed that there was no additional money added to the Money Supply. In QE 4 the FED will simply buy $45B Treasuries/month, starting Jan 1, 2013.

So, the FED will be buying $45B/mo of Mortgage-backed Securities and $45b/mo Treasuries.

One more thing. QE 4 was announced by Charles Evans of Chicago, who will be part of the FOMC Committee next year. He is credited with being the author of QE3.