Ron Paul: QE2 Is a Total Failure and Bernanke Is Delusional About Inflation

I forgot to mention Paul's hard currency argument. Great idea. A dollar as good as gold, a truly almighty dollar. But then we couldn't manipulate its value to help the economy as we are doing now. A cheap dollar is fueling the expansion by helping exports. Good King Ben led the world to believe that he was diluting the dollar with QE1 but the dollar did not lose significant buying power as a result. The CPI dropped from 1% to 0%. See my exegesis one below. And we got the cheap dollar we needed. I say three cheers for Good King Ben; long live the King of Money! I'm biased in his favor because I buy large caps. I entreated you to follow my example after April. Do you remember my sermon to the birds here, 10/12, after St Francis, which I entitled, XOM or cash, that is the question, my fine feathered friends? Up almost a third with a fat dividend. Captain Wimpy watched from the sidelines but it got to be more than he could bear. The DOW will reach 14000 by April. The Gold Rush of 2011 has now begun.(Thank you King Ben!) If you sold on Egypt boo, all I can say is boo hoo you've got me crying for you. In future please don't do anything without my permission.

Unemployment results from globalization. Germany's is 7% because it exports almost half its GDP, compared to our 11%- It may be as high as 14% now. We are not competitive, not sufficiently. We can't blame this on the Fed. Why has globalization been a disaster for the US and a blessing for Germany? Look in the mirror. Food hikes result from price fixing. The money supply could only be implicated if it resulted in people buying more food, with a constant supply available. Commodity prices result from global demand.
QE2 has failed? The expansion is underway and low interest rates can only help. Cause and effect is often impossible to determine in a giant economy. 80 yrs later we don't know what caused the Depression to last so long. I say, if it's not broken don't fix it. Will debt ruin us? It was much greater in 1945 ( vis a vis GDP) and what happened? The 50s, our most prosperous decade.

The Fed will also absorb up to 750 billion dollars in mortgage- related assets at the heart of the financial crisis - bringing its total holdings to 1.25 trillion dollars - and buy another 100 billion dollars in debt from government-chartered mortgage lenders Fannie Mae and Freddie Mac. MARCH 2009The Federal Reserve has passed yet another milestone on its journey into uncharted territory: Its average holdings of longer-term Treasurys have passed the $1 trillion mark.

Prior to the financial crisis, the Fed tended to hold up to $700 billion in Treasurys, two-thirds of which typically had a longer term than a year. But thanks largely to its $600 billion bond-buying program, left unchanged at the Fed's meeting last week, Treasury holdings have ballooned. Earlier in January total Treasury holdings, including short-term bills, passed the $1 trillion mark. Last week the Fed's holdings of longer-term U.S. debt, notes and bonds—those with a term of more than a year—averaged $1.022 trillion. JAN 2011

For those who support Bernanke's approach, think about this: Why is it fair and just to bail out the banks or any business that is "too big to fail"? Your answer that "too many people would lose their jobs" is shortsighted. First off, those people have and are losing their jobs. They're just losing them from smaller companies, i.e. anything other than the few giant companies or government jobs. Those who should lose their jobs are not. Secondly, if those companies (including banks) fail the void will be filled. That's the beauty of the free market. Will it be painless? No. Is the current Ponzi scheme painless? Just wait...

Gentle Ben is no different than any other economist or weatherman.
His QE2, Weapon of Economic Destruction has done little to stimulate the economy for the masses. It reminds me of an old political campaign slogan from years back, "Where's the Beef".
Remember that an economist is an expert who will know tomorrow why the things he predicted today didn't happen.
What do you think Ben? Will today be partly cloudy or partly sunny?

No one has there hands on the wheel. Hold on for a wild ride. When oil is $5.00/gal, I will sell my stocks and keep a shot gun at the door.

QE2 is only a failure if you thought its purpose was to improve the economy and stimulate employment. It is actually a great success when you consider its purpose is to enrich Goldman Sachs and other Wall Street insiders and then to usher in the planned destruction of the dollar.

One of the very few men in government with any understanding of ethical behavior, reality and doing what is best for the people.

Totally agree! But talk just isn't getting it done.

Ron Paul is correct. QE2 is a complete failure. Not only has it created major price distortions on asset prices, (stock market, commodities, etc) It has done very little to stimulate genuine economic growth. Every one of us, including the most vulnerable in society have had our pockets fleeced with the falling dollar and artificial price increases resulting from speculators altering the price of commodities in large supply, despite a reduction in consumption of the same. These same speculators happen to be the biggest beneficiares of QE2 (Goldman Sachs,most major banks,etc) So much for real supply and demand. Ron Paul is correct to request an audit of the Federal Reserve. The USA deserves a financial system built on a strong foundation that includes trust and tranparency.