The G-20 summit found our financial officers attempting to sell Bernanke’s QE2 program to a very skeptical audience. The audience, officials of our major trading partners, took the “looks like a duck…” approach: QE2 is aimed at devaluing the dollar so that the United States can export more and pay off its international debt with inflated dollars. To them it look like the opening salvo in both a trade war and a currency war. Our public officials spent much of their time denying these intentions. “Inflation is low; we are only keeping long-term interest rates down to simulate our economy.” They, of course, convinced no-one, including those in the bond markets. Long term interest rates are floating upwards.