FoxNews.com - Ben Bernanke Says Congress Should Not Cut Spending or Boost Taxes

FoxNews.com - Ben Bernanke Says Congress Should Not Cut Spending or Boost Taxes: "Lou Crandall, chief economist at Wrightson ICAP, said Bernanke is right that the Fed's purchases won't significantly change the amount of money circulating in the economy. That's mainly because banks aren't lending most of the money they already hold in reserve. When the Fed buys Treasurys, it increases the reserves in the banking system. For those reserves to actually 'create' money, the banks would have to lend it."

So it only sows the seeds for inflation.