You're just repeating what I said. And yes, the goal of the Fed, eventually, is to get some inflation. The question is whether that will be hyperinflation. Given that they're increasing the supply of reserves by 600 billion, which is a trivial amount in the context of the US economy, I doubt it.
Then I probably misunderstood your comment Also agreed. And I also I don't think there'll be HYPERinflation, however I wouldnt be surprised if inflation would become higher than 10%/year and I'm not talking about the CPI, since that's a totally useless number.
Well, if we get 10% it wouldn't be based on QE2, but to something stupid they did or didn't do when output really does start ramping up bigtime. This is where I get nervous: Bernanke, by some accounts, was the one that convinced Greenspan to knock rates all the way down when he was a member of the Fed board. I remember wondering what they knew that the rest of us didn't when they brought rates so low. So, the man has a history. I'm hoping it doesn't repeat.
use this metaphor. think of money as trees in a forest. the more trees there are in a forest the greater the fire once the fire starts, no matter what the reason is.
I think most people would rather have a George Bush economy vs. Obama. I remember MSM tried to convince us that the economy is really really bad under W, now they are telling us that that things are much better. Also, what are you talking about when you complain about the 'decline of the dollar'? Which currency would you rather have? The Euro?
"Which currency would you rather have? The Euro?" this is the logic if the husband says the soup is too hot. the wife responds do u want it cold? there are no other currencies in the world to your way of thinking. how about the canadian dollar?