The issue of how much Quantitative Easing is not settled. I believe it is inevitable as outlined here.
Gary North believes that Bernanke has recently drawn the line in the sand regarding Fed independence:
Congress will kick the can. But the day will come when the FED will not help Congress kick it any longer. That will be the day of reckoning.
Mr. North’s take is worthwhile. It differs somewhat from mine in the manner in which he believes things will develop.
Our conclusions are virtually identical. The primary difference is that Mr. North believes that Mr. Bernanke will adhere to some line in the sand. I do not. Regardless, Mr. North expects Congress to override Mr. Bernanke.
Time ultimately will determine which scenario is more accurate. Both have the same outcomes — the destruction of the currency and probable hyperinflation.
North on QE…
I found your entry interesting do I’ve added a Trackback to it on my weblog
…