All Aboard The QE2

As Helicopter Ben sets sail with $600 billion in bond purchases.

The decision, which takes the Fed into largely uncharted waters, is aimed at further lowering borrowing costs for consumers and businesses still suffering in the aftermath of the worst recession since the Great Depression.

The U.S. central bank said it would buy about $75 billion in longer-term Treasury bonds per month. It said it would regularly review the pace and size of the program and adjust it as needed depending on the path of the recovery.

In its post-meeting statement, the Fed described the economy as "slow", and said employers remained reluctant to add to payrolls. It said measures of inflation were "somewhat low." 

"Although the committee anticipates a gradual return to higher levels of research utilization in a context of price stability, progress toward its objectives has been disappointingly slow," the Fed said.

And as the dollar shrivels as a result, inflation begins in earnest in 2011.  By the time next year rolls around, it's going to be truly ugly.  Oh, and the House Republican in charge of the Fed?  Ron Paul.  This ought to be fun.