If Bernanke follows QE2 with QE3, QE4, ... then foreign investors and central banks will begin to lose confidence in the US's ability to manage its finances and they will begin to ditch the dollar. Once dollar loses its status as world reserver currency, US interest rates will soar, and credit markets will collapse, hyper inflation will come, the cost of funding government operations will be increased by many orders of magnitude and force the Fed to print more money, and so on and on.
Some related news:
Shocking New IMF Report: The U.S. Dollar Needs To Be Replaced As The World Reserve Currency And SDRs "Could Constitute An Embryo Of Global Currency"
http://theeconomiccollapseblog.c ... -of-global-currency
South Carolina lawmaker wants separate currency for state
http://news.yahoo.com/s/yblog_th ... -currency-for-state |