Hey Don I am with you. The question came up when I was reading one article after another trying to understand what is now going on. many people do not understand what the QE is the Fed is doing. The facts are we print money and then have to sell bonds for the money we print. The rates are so low China no longer wants to buy and along with other foreign countries and investors. If we raise the interest rate our budget will balloon so we can't do that either. So we have to BUY OUR OWN BONDS. This is called QE a more detailed explanation is here http://en.wikipedia.org/wiki/Quantitative_easing...........but basically what we have been doing is buying our own bonds because no one else will. Would you want to tie up your money for 10 years for less than 2%?

This much QE is unprecedented in our history. They feel it is working so well that Bernake told the EU to do the same as he thinks this is some sort of magic. At the end there will either be either more tax hikes to pay for it or inflation like we do not know it for the last 35 years. Yea I know its my opinion, I read all the articles I can during the last 2 years trying to understand this and what will happen. My opinion is when and if something bad happens it will come with no warning.

I have never seen an economy based on buying our own bonds because no one else wants them. We are in uncharted waters in my opinion. That is why the Fed is saying they now want to discontinue QE slowly. I can see middle class taxes going up 2-5% in the next 2-3 years to pay for it.

"Who knows what evil lurks in the heart of men"