Not only Bernanke, but many of his fellow central bankers across the globe have decided to follow the path of most quantitative easing, defined by zero-bound nominal interest rates as well as historical balance sheet expansions. The Federal Reserve is no longer a market participant, but is literally the market. It can dictate velocity and vector. It can, all on its own, flood markets or cause a drought. According to Barclay’s economic team, the Federal Reserve is destined to own one third of the Treasury market by the end of the next year. In other words, the US taxpayer.