| Econ 101: If you print more currency, the value of currency decreases. Bernanke is printing money like it's going out of style. His strategy is to decrease the value of the dollar in an attempt to lure foreign investment to the US and/or foreign importation of US-produced goods (and also to bail out hedge funds and i-banks who packaged subprime mortgages and are now butt-hurt as a result). It's not working, and while it may not result in a currency collapse (that's still up in the air, but seeming more likely every week), it will almost certainly cause a recession and/or aggravate existing economic problems brought about by the liquidity crisis on Wall Street and the housing crisis nationwide.
The Euro is also set to overtake the dollar as the reserve currency of choice worldwide. This will have ENORMOUS consequences (none of them positive) for our economy. | 