Quantitative Easing 2 = Great Recession 2

As Ben Bernanke is questioned by members of congress this week in relation to the Federal Reserves recent Quantitative Easing position and the potential inflationary pressures it could apply here and abroad, one got the feeling old Ben was talking down to those that questioned his strategy and authority. He deflected the notion that policy here in the United States was causing a rise in commodities such as food and energy, and the resulting civil unrest in Tunisia, Egypt, and potentially other nations. The fact is clear that debasing the value of the worlds reserve currency which the dollar is, applies inflationary pressures and commodities rise, the civil unrest usually occurs first in poorer nations where they cannot sustain such increases in the cost of such vital resources. Here in the United States we are better insulated from these increases due to a far greater standard of living, and wealth of its average citizens. Strangely enough the complaints of the Egyptian people of a broadening disparity between the rich and poor are starting to sound like a familiar theme in the U.S. between the middle class and the rich. Such issues as national deficits, unfunded pension liabilities, and the diminished wealth of average Americans will probably increase in the years ahead if comprehensive and effective solutions are not made.