Debasing The Dollar

Now that the printing presses are running 24-7 and the Federal Reserves Quantitative Easing policy seems firmly in place, history again has an opportunity to rear its ugly economic head. We have seen it happen to the French, Italians, and others that chose the path of debasing various currency's in an attempt to revive economies. You may ask the question, well if its so detrimental why would the Fed adopt such a position?. There are only so many bullets in our economic arsenal. At the beginning of the great recession we accelerated the sale of U.S. Treasury's to primarily China, Japan, and European countries, followed by massive liquidity infusion into the banking system, and kept interest rates suppressed for an extended period of time. As inflationary pressures expanded in China and other countries, they contracted dramatically on there debt purchases leaving us where we are today. As we print money we flood the supply thus diluting the demand, and in turn debasing is the net affect. We are following a path that the pound sterling has already been down and its not pretty. NOW is the time to slowly back off these policy's, but the central bank and its authority's seems adamant to continue.