Quantitative Easing

I am absolutely flabbergasted at Bernanke's comments that the US economy is going to recover in 2010. And that Kenneth Lewis of B of A said that Jan and Feb were profitable quarters.

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B of A is in no possible way profitable unless it ignores its' writedowns. ARRRGH.

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The U.S. has entered the most ridiculous era of printing money out of thin air, and then buying its own Treasuries. In other words, it is printing money to lend to itself to bailout itself!!!

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The USD is just another asset bubble in a musical chair world of finance where one asset bubble replaces the other. First it was dot-com, boom and bust. Then it was real estate - boom and bust. Lately, the USD got oddly strong, and it's undoubtedly going to crash, causing inflation.

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This actually is super super smart for the U.S. to do, because China artificially suppresses its currency to keep exports strong. It then took all the extra profits it was making from U.S. exports, and lent it to us to the tune of a trillion in Treasuries. Well guess what, China... the U.S. - if it goes into hyperinflation (which it will) will pay back with worthless future USD. That is like the ultimate F.U. to China, and honestly, China deserves it.

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Whenever you are massively in debt, inflation helps you because your loan payback amount is fixed - not indexed to inflation. When the USD becomes worth less per unit, the relative size of the debt goes down in a percentage matched with inflation. It's brilliant actually, and inevitable.

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Of course, this then bankrupts the U.S. but it already is. The only reason operations and bailouts are continuing is because the U.S. now is lending money to itself by printing money.