The Ramification of the QE Policy for Ordinary Folks

Many point out that the U.S. Quantitative Easing policy is intended to stoke another series of asset bubbles and there would be another round of QE.

Many also claim that the U.S. QE policy is devaluing the USD. It is inflating the market up, along with PM prices and commodity currencies.

What would be the ramification of the QE policy for ordinary people?

Many contend that it will impoverish many ordinary folks through skyrocketing commodity prices. Will the U.S. QE2 make basic necessities more expensive? Some argue that basic necessities will take up a bigger portion of household incomes, thereby reducing consumption.

Some like Denninger argue that rising input costs due to the QE policy would force companies to squeeze their profits, thereby causing mass layoffs.

This may be on a long time line. In any case, history has shown that it never ends well for ordinary folks.