Hyper Inflation Looming?

So today, instead of listening in my class, I was surfing the inter-web and stumbled upon an article about the Quantitative Easing 2. For anyone that does not know what I just referred to, please take a few seconds and read the article. From what I had learned from this article, the Federal Reserve will be flooding the market with a total of $900 Billion USD by the third quarter of 2011. The majority of this will happen in the next eight months as the central bank will buy $600 billion in long-term Treasuries. What is this going to do to the economy? Well for now, we see Markets reaching a new high since the crash and that everyone thinks that we are on our way out of the economic scare. I, myself, do not know a lot about finance, investing, and/or the markets. But what I can say, is that flooding the market with $900 billion dollars (that were made from thin air) can NOT be good for the economy. They talk about scares of deflation, but honestly think about this.

We start with an economy of $10k and then add $9k (made from thin air) and what happens, the currency of this fake scenario just devalued because the economy now has a value of $19k. The new money gets its value from stealing the value of the money already in circulation. This leads to inflation, so how can we fix inflation, by inflating the market even more? As I sit and ponder this, is deflation bad at this point? Are people really scared that our dollar is going to regain the power it once had? I mean this could be a scare tactic but when you sit down and think about it, we need the dollar to deflate so that it can regain it's value.

Check out this video. It explains things A LOT better than I could do.  I recommend to view the first part of the video about the Monetary System [6:45 if you want to skip the intro] (If you do spend the time to watch this entire video, please keep in mind that these are views that are far from the norm. Some may not be entirely true, but it is important to see that there are other viewpoints than the daily ones we see)

"Believe me, the next step is a currency crisis because there will be a rejection of the dollar, the rejection of the dollar is a big, big event, and then your personal liberties are going to be severely threatened." 
-Ron Paul-

Cheerio

Alastar Swift