For the record: One trillion dollars into the economy

The United States government is running out of ammunition. Bailouts needs more and more money and no one can afford to lend the money to the Americans anymore, not even China. So what to do? The Federal Reserves surprises everyone yesterday, pumping in one trillion dollars into the economy by buying Treasury bonds. And the real surprise is the market is actually happy about it. 

So what is the impact with this continuous creation of money out of thin air? In the short term, things may work out, but it will create a potentially bigger mess in the future. The American dollar will weaken against other currencies. And there is a sneaky feeling that inflation might spiral out of hand. Let's hope another Zimbabwe is not on the way.