I'm going to attempt to explain how all this nice Quantitative Easing (in the US and by the ECB in the Eurozone) in an easy to understand visual. Your favorite neighborhood bar serves 1 dollar 12 oz drafts. this bar is in the desert and there is no water nor beer available to anyone except at this bar. they order a Keg of Shiner Bock. after a few days about 1 gallon has been sold. The bar owner (the fed) announces that they are going to institute QE (qualitative easing ) They add a gallon of water to the keg and still sell the drafts for a buck. they continue to sell the beer until another gallon is sold . They have another QE and add a gallon of water to the keg. and continue to sell the beer for a buck. The patron complains that the beer seems weak. the bar doesn't care, It's making more money and they are the only place to get it. After about a month the bar has added 5 additional gallons of water to the keg and continues to sell it by the glass at a buck a pour. So at the end of the month, the bar owner has sold 7 gallons of beer (diluted). The bar owner is raking in the profits. And the bar still has a full keg. The patrons are getting less beer and more water for the same price. How long can the bar owner (fed) keep this going? The answer is. Until there is no more water to add to the keg.