Note that the same people that forecast that QE1 would be the end of the world, (Schiff, Denninger etc.) haven’t said much about how QE1 was reversed out with no hyperinflation, or anything close.
Don't be too quick. It won't happen on a schedule. Assuming that nothing untoward *appears* to have happened is proof that it isn't going to happen is not wise.
The fact is, without printing hundreds of billions of dollars to "buy" US debt, the US government couldn't run its current operations. Because there simply aren't enough *real* lenders out there willing to lend the money.
If you drive your car without sufficient oil it will continue to run for a time. Thinking that, because the engine didn't seize up the first week, it can't / won't happen is denial.
The government's creation of "money" with no tangible goods and services to back that money is simply smoke and mirrors. Too big to fail is keeping us afloat right now. Not much of a life preserver, IMO.
Several years ago, tax cheat Timmy said that US debt was no problem because we have a magic device called a printing press. I'm certainly not going to bank our future on babbling from the (economic) village idiot.
People who believe the hype about hyperinflation from (Schiff, Zerohedge, Denninger etc) need to look at the actual data.
http://www.federalreserve.gov/releases/h6/hist/h6hist1.txt
note that m2 has increased less than 10% since the fall of 2008.
This article has a good summary of QE1, and basically summarizes my view.
http://pragcap.com/quantitative-easing-the-greatest-monetary-non-event
My reference to QE1 being reversed out is that the agency debt has been sold off.
http://pragcap.com/ben-bernanke-explains-fed-qe