QE2?

Lynn Swearingen (c) copyright 2010 ALL RIGHTS RESERVED

For those of us who have been waiting for the “train” to leave the station on the United States Economy, I’ve got news for you. There is nothing barreling down the tracks waiting to hit the proverbial blockage on the tracks and explode our Economy into the largest Depression ever. Instead, QE2 is waiting at the docks “ready to sail”.

“Quantitative Easing” part deux (QE2) was first publicly bandied about in debate last month spurred by St. Louis Fed President James Bullard’s comments:

…who suggested the Fed may have to buy more Treasurys as he warned about Japan-style deflation. The idea gained momentum, but expectations for a quantitative easing move at this Fed meeting really took off after Friday’s surprisingly weak July employment report.

Actually the debates have been spurred by a paper written by Mr. Bullard titled Seven Faces of “The Peril” in which his comparison of the United States and Japanese economic “similarities and differences” dance around one another in squares and circles with fancy charts, analysis of Seven Case Studies and numerous esoteric comparisons which fill 24 pages of the pdf in a mind-numbing conflagration of confusion. The opening paragraph should advise one of this reality: More