Quantitative Easing is confusing for many people. That, of course, is for the Federal Reserve, the Federal Government and major financial interests. If people knew what was happening and what must result, there would likely be a revolt.
Elsewhere, I have written that QE is nothing more than a euphemism for “money printing.” It is a policy of inflation dressed up with an Orwellian term to hide its purpose which has little to do with politics and more to do with political survival.
A post at Truth Alliance Network deals with QE in a colorful and simple manner. It explains QE and its effects in a manner that the average non-economist can easily understand. For starters, it answers the question whether QE2 will be extended and why:
To put it succinctly, QE is an economic deal with the Devil. Once it is begun in earnest there can be no turning back. It must be played to its ultimate conclusion.
The author uses the analogy of keeping a tent inflated to explain QE. It is a brilliant analogy, especially useful for the layman to understand the QE process and why it cannot work.
In conclusion, the author states:
The problems we are experiencing have been a long time in the making. They began in earnest in 1913 with the formation of the Federal Reserve. It’s taken several generations for the Federal government and its central bank to usurp the world’s monetary system and as such few have noticed. But what’s different now is that we have hit the knee in the curve, the point at which events start to accelerate dramatically as we approach the end of the line. Those who understand QE realize that America as we knew it is already gone. Over the next decade the rest of America will become painfully aware of that fact as well.
This short article is recommended reading for all, estpecially the economically impaired (feel free here to think of Congress, although they have other motives in play than proper economics or your well-being).