QE2 is going to end with high inflation, high interest rates, a lower dollar, and turmoil. The good news is that they are making so many mistakes that eventually the Federal Reserve will go away. It will go away and disappear just like the first two central banks of the United States did. The world has problems, but not as many as those that are being put on us by this central bank.
The Federal Reserve has been throwing gasoline on the fire, but we need to be putting it out. Bernanke has never been right about anything in the 6 or 8 years since he has been at his position. The only reason you should listen to him is as a contrarian indicator.
When lots of money is sloshing around, it has to go somewhere. However, when this happens, everyone expects one thing to happen, and typically something else happens. It is about time to short treasuries again. The stock market has doubled in the past two years because of record profits for companies.
It is clear that there has been a collapse in emerging markets, and when that happens it is a good idea to go the other way.
