My understanding of Bernanke's message is that a raise in interest rate might be expected between the end of spring and the end of summer next year , from what i recall he warned the financial system they should not expect a long time warning before the Fed starts applying their exit strategy in due time .

Once again out of memory i seem to recall that either the IMF or the ECB talked about the need of coordination among countries when comes the time to demoneytise . So if things happen accordingly and if i'm not confused about those statements then a measure of warning would be given if and when countries having stimulated their economy through moneytisation start talking about coordinating their efforts to demoneytise .

But on the other hand many complications and diverging interest may interfer in coordinating their efforts , but i expect the US to start raising interest rates prior to demoneytising their economy wich might spur banks to lend a little more willingly . It's hard to imagine the Fed raining in the money before the economy appears to be improving enough to keep the momentum injected through the stimulus package .

Interest rates should be raised slowly while being monitored in order to control the impact on the economy . For sure selling bonds in 2010 might prove trickier then in 09 , major buyers are quite worried and trade talks between the US and China might have some impact on those treasury sales .

Greenspan said this week end he expected 2009 Q3 growth in the US to be around 3% wich is not too bad in the present situation though some of that growth as a lot to do with the money injected in the system, if Q4 and 2010 Q1 were to show similar progress it would be a very positive sign but if it were to slow down instead then i believe the Fed would be in a bad situation and raising interest rates or demoneytising would become much more complicated .

The fact that the US dollar has lost so much ground should be stimulating for US exports and maybe that will help support enough growth in the coming months in order to make things easier for the Fed to apply their " exit strategy " time will tell .

Regards Tec !