I hate quoting myself, but it’s brief enough to skip on linking to the original comment:
Ron Paul’s words in the House this morning deserve a listen:
Quantitative easing, the creation of a given amount of money ex nihilo by the central bank, has been called the Fed’s nuclear option.
Will the U.S. government default or will it avoid the name while doing the thing through monetarizing the debt?
In other words, will we move from the Hiroshima bomb to the next generation weapon, with the central bank buying up all outstanding or all new federal debt using the modern equivalent of freshly printed dollars?