Quantitative Easing Part Two

This is really scary stuff. And if your investments are in dollars... you may want to think very hard about what is being said.With 40 or so countries currently tied to the dollar the effects of the dollar aren't being seen at home but the edges are fraying overseas. These countries are in effect, holding the dollar up...

Ben Bernacke June 2009 "The Fed will not monetize the debt!"



What is even more scary is those in Congress who think it would be a good idea for China to allow it's currency to float. This would be unbelievably inflationary at the retail end since most of the products Americans buy come from China. This would set the stage for what the Federal Reserve says can't happen.... Stagflation. Prices rising as the economy continues to stall. But this is very possible since we are relying heavily on imports to keep product prices low. With the price of products increasing fast and being sent overseas this will only add to the sour economy.