Inflation Expectations Fuel Optimism?

http://www.marketwatch.com/story/brynjolfsson-bets-on-inflation-2000-gold-2010-10-20
Who am I? Not on a spiritual level, but in this world. I am a mother of two with a degree in economics and an MBA. I have a very small tax preparation and consulting business and am planning on sitting for the CPA exam within the year.

However, I am no Einstein. I have no PHD in economics. I do not work for the FED, and I have spent most of my adult life raising children and running a household.

But I am smart enough to know this:

In order to believe that you can beat deflation with cheap money, and not destroy value in the process, you must not understand how wealth is created. So, it follows logically that he really believes he is doing the right thing by flooding the system with money and credit, and that he thinks the cure for deflation is inflation. He must think he can bring about growth through currency manipulation. He is mistaken.

It seems many on Wall Street agree with him and also believe the remedy for deflation is quantitative easing. It is not.

They fail to realize that rising prices won't stimulate demand, but will depress it even further.

Printing money does not create jobs, it devalues currency, destroys wealth, reduces purchasing power, and is the way many great civilizations have come to an end.

If the FED goes ahead with QE2 there will be so many distortions in our economy that it will become pointless to analyze it. We will end up with a hyperinflation depression, similar to Weimar Germany's pre-WWII episode.

I was naive enough, and hopeful enough to believe that if QE1 didn't work, the FED would change course and accept that we needed to go through a period of asset price deflation in order to bring the economy back in to balance.

Apparently, since this would mean the end of many powerful banks and bankers, the FED does not have the integrity, or the guts to do the right thing.

I will be voting for anyone who stringently opposes QE2 and proposes a change of leadership at the FED. Bernanke and his followers need to be ousted immediately if we are to save this country from economic ruin.