What comes after QE1 and QE2.... Inflation or QE3?

There is a great article in Financial Times : http://www.ft.com/intl/cms/s/0/96ec2b02-8146-11e0-9360-00144feabdc0.html?ftcamp=crm/email/2011518/nbe/ExclusiveComment/product#axzz1MjL4EYXz

It discusses the next step from here.  QE2 is about to end.  Conventional Wisdom suggests inflation.  Check out what Galbraith refers to Conventional Wisdom as (since he brought the phrase to popularity).

If you doubt where the author is going... consider that Japan went through QE8 and was still a wreck before the tsunami hit!

"What's that mean to me as a cu?"  Glad you asked!  If you've been staying short and waiting for the rates to rise - Don't. Ladder out longer now.  Just be sure to use step-ups or variable investments.  Never fixed.

Some have seen a resurgence in borrowing.  That's great, but don't give the store away on very long term loans a very low fixed rates.  That's akin to putting all your eggs in one basket.

I happen to agree that we are in for a long slow slog back... There is no rainbow and no pot of gold waiting for us in the near future. We've been on a 25-year buying binge... the consumer is learning a new lesson in a new economy right now.  I don't see massive running up of personal debt any time soon. Remember, it was the consumer who drove 70% of our economy for a long time. We don't have the economic engine to pull us through, this time around.