Name it whatever you like but there will be QE3. The US is technically already in default from the moment that against the law it exceeded the debt ceiling by borrowing hundreds of billions from the US pension system. Taking into account that they have an unpayable debt one must assume that at one point the money borrowed from those pensions will be in default.
The debt ceiling will likely be increased as anticipated by $2 trillion to last until the 2012 election, if there is one. Were the economy and the dollar crash before then, there is no telling what the consequences will be. If the debt ceiling is not increased the US will be unable to pay its bills and will go into default causing untold misery and unrest. The budget deficit of over $100 billion per month cannot be cut without taking food off the table of tens of millions of Americans which would cause massive social unrest and perhaps even trigger a revolution.
When the debt ceiling increase is approved and likely it will because no one in Washington is in the mood of experiencing what will happen if they don’t then QE3 has to come into existence because no one else but The Federal Reserve will purchase the additional debt. This of course will solve nothing other than to continue this dream until a later date when it eventually will turn into a nightmare.
Ben Bernanke will speak today and as usual he will speak in abstract terms and say little in order not to have to tell blunt lies. The can will be kicked one more time towards the wall at the end of the road.