Indeed. The easy money policies of Alan and Ben have resulted in our dollars (what we get in exchange for our labor) having less and less purchasing power. And for what? To bail out irresponsible gamblers and speculators who take us from one bubble to the next. The text below summarizes the situation nicely.
"US public and private debt is hugely out of equilibrium. There are four ways equilibrium can be restored. US consumers and the US government can cut their expenditure to repay the debt. They can default on some of the debt. They can renegotiate some of the debt. Or the Fed can inflate away the real value of the debt.
Mr Wolf recognises that inflation is the easiest course. Realistically, it may be the only option open to a country that finds it difficult to live within its means. The US will have traded toxic debt to China for lead-painted toys."
