“Bernanke may be an excellent economist, but he is not a very good bond salesman”, Reynolds contended, adding that “Bernanke and his FOMC allies are risking higher interest rates and inflated commodity costs in the pursuit of the contradictory objectives of higher inflation and lower bond yields”, seemingly oblivious to all the evidence that they are pursuing an impossible dream,
according to news.xinhuanet.com interview of Alan Reynolds, a senior fellow with the Cato Institute (emphasis mine).
Xin Hua is a Chinese news service offering an English-language edition. The site features photography, an analog clock with a second hand, news stories unavailable from other sources, and often biased coverage of events of every sort about the U.S.A., Europe and most Asia-Pacific nations.
A mirror version can be found at http://english.news.cn. Note that
cn is the country domain identifier for the The People’s Republic of China.
I did find this section of the article quite informative, as I had no familiarity with the Federal Reserve Bank’s prior use of quantitative easing (QE1):
The U.S. central bank cut the interest rate to history’s lowest level in December 2008 to cope with the worst recession after the Great Depression in the 1930s. And it has purchased about 1.7 trillion dollars in U.S. government debt and mortgage-linked bonds, known as the QE1.