Quote from krazykarl:
I like Fisher more than many other pundits, but I don't agree with him here.
QE2 is not as bad as many people are saying. What I tend to see is strawman bro-science arguments as to why QE2 is bad and why there will be hyperinflation. Let me propose a few things:
-Nominal Inflation is good(read, very good) after a period of deflation provided wages haven't contracted too sharply.
-The sky is not falling
Inflation allows the notional value of people's debt to decrease, and right after a recession they are already in the mindset of saving more and spending less. The next 5 years is an opportunity to reduce national, and personal, debt.
What I've noticed the past year is that the USD is starting to get some strength in small bursts while the Fed continues to print; this tells me the velocity the fed is using is VERY good. Keep in mind people that the Fed has more accurate data than we, or any pundit on TV, does. Put some faith in the people with ALL the data making decent decisions; a zombie apocalypse is good for no one.
