Bernanke's Folly

The chairman made it official that the Fed will be implementing QE2 (Quantitative Easing)  in the form of buying back $600 billion in U.S. treasuries. For those who need clarification, this translates in to monetizing our debt, which, by the way, Mr. Bernanke had testified to the Congress that he would not do.  The intended purpose of this foolish act is to nudge interest rates lower, make credit even cheaper, and consequently (it is hoped) jolt the faltering economy back into health by providing excess liquidity to the credit markets. Unfortunately, the unintended consequences, as Bill Gross of PIMCO -- manager of world's largest mutual fund company -- speculates, is 20% or more devaluation of the dollar.This decision, which even some Fed members apparently disagree with, once again demonstrates Fed Chairman Bernake's incompetence/deviousness (the latter for those who are "audit the Fed"-type conspiracy buffs).For any hypothesis (a proposal intended to...(Read Full Article)