It is not the inflation that scares the Fed

What’s going on here? My interpretation is that Mr. Bernanke is allowing himself to be bullied by the inflationistas: the people who keep seeing runaway inflation just around the corner and are undeterred by the fact that they keep on being wrong.Incessant Krugman

QE2 is not over, growth has slowed. Congress cannot grow central government with parabolic growth, the states are in no position to carry central government.What is bothering Ben is the increasing price he pays for the volatility of the Fed's actions, the dependence on Treasury trading that builds up in the big financial institutions, the pending  guarantee costs building up in the TBTFs.

 So much for the Fed’s independence.

The Fed is buying Treasuries, nothing else. That is not independence, that is dependence.

If Krugman wants the Fed to get radical, here is an idea. Sign us all up to a digital account at the Fed. Then bit by bit, put the robots in charge of final delivery, Update the currency technology.