Wednesday – QE3 or not QE3? That is the Question

QE3 or not QE3?  

That is the question.  Whether 'tis stupider in the US to erode its buying power with outrageous inflation or to take loans from overseas nations and, by defaulting, to end them?  Ben lies: we're sheep; No more; and by being sheep we suffer the heart-ache and the thousand pricing shocks unmeasured by the CPI, 'tis a consumer tax, despite what you had wish'd.  Ben lies; we're sheep: living a dying dream: Aye, there's the rub; when fleecing sheep what jobs may come when we have scuttled all their buying power?  

While Obama's all talk and no action style of governing does tend to remind us of a short-lived Danish Prince, Ben Bernanke is no Polonius – more like Claudius who poisons our Father the Dollar and spends the rest of the play attempting to cover it up, mostly through word play and various machinations.  The prince, meanwhile, although told of Claudius' guilt by his Father's ghost and seeing a mountain of evidence build in front of him – does virtually nothing until, at the end, everyone dies.

Yep, that pretty much sums it up for our economic situation with today's "QE3 or not QE3" speech by Bernanke coming late in the play when everyone in the audience KNOWS QE2 is destroying the Global Economy and doing no good at all for the American people – other than those able to speculate in the markets.  Yet here we sit, rapt and dumbfounded, by the inaction of our leaders – as helpless as any theater audience to interrupt what is clearly an unfolding tragedy playing out on the stage before us.  If only we had a more decisive leader:

Oh wait, we gave that guy a chance and he blew it too, didn't he?  Of course these are complex problems with many players on the World stage but, as I mentioned to Members in this morning's chat – not every nation is going to be willing to sit back and play their part in this disaster anymore.  The S&P cut Japan's debt outlook to Negative this morning, we discussed in yesterday's post how Trichet is putting his foot down and now China is saying "it's over Benny" as a front-page "official" editorial in the China Securities Journal comes out very strongly against supporting Uncle Ben's monetary madness anymore:  

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