"Quantitative Easing" was the con game that saved big investment banks and insurance companies five years ago. The Federal Reserve has been making noises about bringing the speed of the printing presses down a notch or tapering off for months. "QE" really means they've been easing money out of the pockets and bank accounts of anyone who tries to save money and pay their bills on time. Predictions are that it will lead to hyper-inflation.
Does anyone besides me remember the double digit inflation and turmoil of the Carter years? Price lists were obsolete before the ink was dry. I fear we're heading into another of those periods, hastened by such debacles as tax refunds for those who don't pay taxes. Have you noticed derivatives are gaining in popularity again? Shrill TV commercials say that if you owe $300,000 and your house is worth only $150,000 you can refinance it. Isn't this how we got into the financial mess of '07?
The Fed has been pumping $85 Billion a month into investment banks and Wall Street to buy worthless bonds. Brokers love the commissions. Last week Bernanke and Co., decided to keep up the "Artificial Insemination." The stock market went silly over the news. In fact "AI" may better describe the activity than "QE." Mr. Bernanke said the Fed has two goals. The first is to create employment for the middle and lower classes and the second is to keep inflation in check. I don't know how you score his success, but I give him an F in both.
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