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Quantitative Easing Explained

This video provides a simple *and* accurate explanation of quantitative easing.

Despite self-professions to the contrary, Banana Ben's actions are neither historic nor unprecedented; the Japanese have employed quantitative easing for years. The Japanese used quantitative easing to save their banks and their bond market, but it had virtually no effect on the productive economy.

After living in Japan (to buy distressed assets), I feel like I'm watching a movie for the second time, but this time, we already know how the movie ends. So many mis-steps are being repeated.

Of course, there are some plot twists. Instead of deflation, we will likely have inflation which will only make the resource reallocation worse. Remember, inflation is a tax, an indirect tax, but a tax nonetheless.