lt cap,

All unimpeachable logic. And you did cite some of the negative effects of QE. I am simply puzzled by how can we print so much money, with no backing, and the 'price' is some rather mild effects, rather than huge downstream problems as a consequence. Did we play with fire and somehow avoid getting much blowback beyond a little 'singeing'? Is 'timing' everything, so that a strong dollar and commodities over-supply has avoided the bullet of runaway inflation that one might expect from pumping so much money into the economy? I'm sure I could use some more sophistication in my understanding this. But it feels like someone declared that 2 + 2 = 5. And damned if they weren't right :-)