[quote=SD Realtor]Lastly, guys like Roubini and Bill Gross say QE2 is doomed to fail and a bad idea. Brian from San Diego is okay with it though… I will go with guys like Roubini.[/quote]
I really do not understand the argument that QEn stimulates the economy. I understand it to be expansion of the money supply, pure and simple, to offset reduced money velocity from low economic activity, including high unemployment. It seems obvious to me that there will be no political will to raise interest rates and unwind QEn even when the dollar declines and inflation increases. I pity the risk averse saver, mostly the baby boomers, seeking to live off of nest egg interest. Negative real interest rates … commodity price inflation … the Krugman school saying, well, there is no wage inflation, so there must not be price inflation, therefore expansionary monetary policies must remain in place … sigh.
