Quantitative Easing II (or QEII), the pumping of $600,000,000,000 into the economy without any wealth creation, was, I think intended to get companies to spend the cash they are sitting on while they wait to see what the rules (taxes) will be before making any projections or planning how to use it. I’m quite sure that the knowledge their money will depreciate in purchasing power by 20% in the next few months will cause them to at least rethink their positions. Whether it will actually stimulate spending is less certain.
One thing is sure. It is going to infuriate anyone we owe, bondholders, those holding dollars, or that we have promised money. And as it trickles down to the general population and they notice everything is 20% higher there is going to be a lot of finger pointing going on in the political class. Hopefully it will cause that “screwy idea”/sarc of auditing the Federal Reserve to come to fruition. You do notice that the official announcement was held until after the election?
Here are some links to “enjoy”/sarc: