I received a high-quality note from Marc Chandler, Chief Currency Strategist at Brown Brothers Harriman, which I think worthy of posting.  He makes several points which are game changers regarding fiscal and monetary policy.  They are:

Don Kohn, an influential Fed official, thinks that the Fed has kept long-term interest rates down in the United States, [...]

The ECB went aggressive today and a big way.  They were the last holdout in the move to quantitative easing (a.ka. printing money).  They have lowered rates to a record low 1.00% and issued a statement that the European Central Bank will begin purchasing covered bonds (a.k.a propping up the market artificially).  If you don’t [...]

Martin Hennecke, a frequent guest on CNBC, is recommending that investors who have fled to cash and government bonds need to rethink that strategy.  He sees inflation on the horizon and warns that western sovereign bonds will suffer as a result and sitting on cash will be throwing money away. 
The crux of his thesis [...]

When the United States closed the gold window in 1971, the world entered a new era in which nearly all money was supported by nothing more than the full faith and credit of the governments issuing it.  If one looks back to the history of paper money, no government has had the discipline to maintain [...]

Two weeks ago, the Fed roiled bond markets by signalling it would start to purchase Treasury bonds with printed money – the very definition of inflation.  
Now, its the ECB’s turn to show it can inflate with the best of them.  They have adopted extraordinary measures despite the view of many that they have not [...]

The following post is up on Morgan Stanley’s website and highlights the degree to which money printing has become the policy tool of choice used by central bankers with which to fight this deflationary threat. I have highlighted the whole paragraph on the inflationary risk of all of this.

You probably saw this one already, but a pair of suspected narcotics traffickers threw gads of money from their car window while being pursued by the Drug Enforcement Agency (DEA) in a car chase in San Diego. Basically, it was free money for any other drivers willing to risk death picking up the money [...]

This comes via the Financial Times.
The Swiss National Bank’s decision to intervene to weaken the franc has left currency investors with one less haven from the financial crisis.
Its move comes at a time when there are also questions surrounding the future haven status of two other leading currencies: the dollar and the yen.
While the dollar [...]

Quantitative easing is now the main policy course for the U.S. Federal Reserve. The U.S. Federal reserve is buying $300 billion in long-term U.S. government debt in order to keep interest rates low. As a result, the rally I in Treasuries that I have long anticipated is upon us – it is the most powerful rally I have ever witnessed.

As Marc Faber has said, “don’t underestimate the power of printing money.”

The U.S. dollar is getting hammered today. It is now trading near 1.34 to the euro, 1.42 to Sterling, 96 to the Yen and 1.14 to the Swiss franc. These are huge hockey stick style moves. from 1.30 to the euro, 1.39 to the pound, 98 to the yen and 1.18 to the Swiss franc just this morning. The dollar is getting killed here.