Friday, November 05, 2010

All aboard the QE2!

Not the Cunard cruise ship, alas, but the second round of Ben Bernanke's "quantitative easing," which is a fancy term for turning dollars into dimes by way of an extended bout of inflation such as we enjoyed in the 1970s. No longer do central banks actually crank up the printing presses in order to debase the currency; instead they buy U.S. government bonds with money they don't have. Presto! The dollar falls and prices rise. How else did you think we were going to pay off those trillion-dollars deficits of the past two years? Blue skies! -- Dan Ford

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