Qe 2.5....pms Immediately Respond

This is THE primary problem with forcing interest rates so low and holding them there for so long... in business this is called "resource misallocation". In every day terms, this would be called "using money stupidly because it is so cheap to borrow". No matter what happens, we can always count on the Fed to over-do things, stay in the wrong position for too long, and then congratulate themselves on what a wonderful job they are doing.



Unfortunately for the USA, QE is the answer to a question that is not being asked. Uncle Ben still thinks that more liquidity is needed, while the USA and the entire world are already awash in cheap dollars. QE will not address ANY of the REAL problems we face. It will not increase employment, raise wages or salaries, reduce inflation, or make us look as if we know what we are doing to anyone who really does know economics. That would be REAL economics that work in the REAL world and not that Keynesian junk that looks so wonderful on paper but doesn't work at all in the real world.

Yes, stock and PM prices are up but this is absolutely not due to an improving economy. Can we say "inflation"? Why, yes, we can!