Tuesday, November 9, 2010

"Quantitative Easing"

  • "Investors and consumers will pay for the Federal Reserve's misguided move to create hundreds of billions out of thin air," says Bill Fleckenstein — Bernanke's latest folly will cost us.

  • "That last thing the global financial system needs is an additional shot of liquidity and reason to believe that dollar devaluation will be accelerated," says Doug Noland "of the Fed's commitment to another $600 billion of Treasury purchases" — Folly of QE2.

  • Kunal Kumar Kundu argues that the "most important... motive is to increase the supply of US dollars, which would lead to a depreciation of the currency," and that "the most likely impact of the QE2 will be felt, quite paradoxically, beyond the US," with "another deluge of liquidity in emerging market economies (cutting across Asia, South America and Eastern Europe) that will fuel further asset bubbles" — Destructive easing.
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