How and When Will the Bond Bubble Burst as a result of Bernancke's QE2.(Quantitative Easing) and Inflation!

Inflation in it's truest form! That's what these numbers seem to say to me. Commodity prices going up, up and away! Like said in the above video, Wal Mart and other stores are ready to raise prices again. The last thirty years is history especially regarding our economy! As bad as it is now can it really get worse? I tend to think so. I doubt the lame-duck period will do much good either! So what do we do, sit patiently and wait to see what happens? Hope and prey for the best? More small banks are failing, the housing market IS the worst it has been in our history, food prices are rising daily, and if you're working I don't believe you're in for a raise anytime soon. Unions are trying to get their hands in on our police and fire departments after cities across the country are cutting back what I consider the most necessary of funding. Why aren't politicians forced to take reductions, they are after all only part-time employee's and the tax payers sign their pay stubs?

Treasury rates are rising as a result of the Quantitative Easing 2, the opposite effect Mr. Ben Bernanke claimed it would have. The Federal Reserve is ready to purchase unimaginable amounts of newly issued treasury bonds and municipality bonds with what money? The money made magically from quantitative easing! Listen to the numbers talked about in this video from the National Inflation Association and put them with what you already know, does it give you the feeling that the worst is yet to come! Maybe not tomorrow, or next week, or even in the next year, but look two three and four years down the road! The economy is a mess and it seems the Federal reserve forgot to put the lid on the blender before pressing the on button. To me all of this just shows that the government's stimulus good effects are done and the bad effects have made their way down river. Ben Bernanke didn't build a dam with Quantitative easing, but rather tossed a few more oars in the raft to help us through the rapids. Unfortunately it appears we're heading through these rapids without a life vest! So i must ask how long are these white water's and what happens if we hit a rock and sink the raft!? Inflation in China and Ireland and economic troubles in England and France and Greece and most everywhere in the world right now. Looks like the world is riding the same damned river and if one of these countries including the United States makes another wrong move, its going to be a long ride with stormy weather to boot!

Let's just say our economy is in a state of good health. Quantitative easing would have benefits like availability of credit, and lower credit costs which encourage business's to borrow and expand and people to spend. But that's not the boat we're in! The consumer economy is very low and there is little demand for replacing the goods we already have, therefor businesses won't borrow despite available low credit costs because of the lack of market demand. On top of all that households and businesses alike are floating on a river of debt! Where does this leave us? Waiting to see what effects Quantitative Easing and Zero-interest rate policies will have the bond, equity and commodities markets. All of which are "inflating" already, leaving us waiting for them to "deflate", or very possibly "hyperinflate"!

So even after the big banks were saved by the stimulus they are essentially receiving another opportunity to fail again without fear, knowing the Federal Reserve has already put in place the means of protecting them! So they can just sell these bonds and treasuries to the Fed without risk to themselves. This in turn creates a pouring rain that widens, deepens and increases the flow of the raging river of economic crisis already facing the middle-class! In no way will this create a spending spree from the consumer as they'll have to cut costs across the materials board just to buy the necessary commodities such as food. No spending increase from consumers, no increase in product demand, then how can businesses expect to expand to create more jobs and so on! Businesses don't expand and guess what the stock market feels the chill of the waters! Quantitative easing is a down-hill spiral that the middle-class can't afford, and the current stock market will eventually have to come back down from. Quantitative Easing is a solution to certain problems like high credit costs and limited availability of credit but is no way a solution to our large amount of debt and lack of market demand. This is high school economics here, the basics of supply and demand. That leaves me to questions of why the federal reserve implemented round two of Quantitative Easing and what really is their ulterior motives for doing so. Are we being led slowly to a "world currency"?

 Also very good reads I recommend can be found under the following profiles!!

  http://hubpages.com/hub/What-Is-The-Uniform-Commercial-Code-UCC - by-   http://hubpages.com/profile/Reality+Bytes

  http://hubpages.com/hub/Will-The-US-Declare-Independence-from-the-Federal-Reserve - by    http://hubpages.com/profile/bgamall

http://hubpages.com/hub/Quantitative-Easing-Explained - by http://hubpages.com/profile/The+Rising+Glory

http://hubpages.com/hub/Quantitative-Easing-Use-it-to-Your-Advantage -by http://hubpages.com/profile/GlobalTradingEdge