Bernanke is trying very hard to pump up his balloon in America. After QE1, his effort to create jobs was in vain. Unemployment rate continued to stay at around 10% level. Private consumption remained low. Then he thought he did not print enough money. There, he announced QE2.QE2 has only started for two months. Not only unemployment rate continued to stay high, interest rates for 10 years treasury bills surged 75 basis points, meaning that people are anticipating inflation. Even worse, his attempts to make lending cheap were also in vain. Last week, he mentioned about QE3, when QE2 has four more months to go. Bennie seemed to be like the guy in my video, pumping up a leaking balloon, with his same old indifferent altitude.
