Would someone please refute this piece on why QE2 isn't inflationary?

First of all, Jon Stewart had Bernanke admitting it IS money printing about a year ago, then more recently saying it is not. Youtube is your friend.

Here are links to some threads on the subject.

https://forum.freecapitalists.org/t/article-claims-qe-no-change-in-the-money-supply/16456

https://forum.freecapitalists.org/t/in-defense-of-ben-bernanke-any-comments/16527

And here: https://forum.freecapitalists.org/t/bernankes-own-words-i-am-not-printing-money-qe2-not-what-we-think/16444

And here: https://forum.freecapitalists.org/t/the-conservative-case-for-qe2-or-why-i-still-will-not-be-an-austrian/17125

And here: https://forum.freecapitalists.org/t/quantative-easing-is-not-increasing-the-money-supply/18119

Here is a bit of wikipedia on QE. Note Step 2, which is the money printing:

Steps1. The central bank has previously targeted an extremely low rate of interest, near or at zero percent.

  1. The central bank credits its own bank account with money it creates electronically.[10][37]
  2. The central bank buys government bonds (including long-term government bonds) or other financial assets, from commercial banks or other financial institutions, with the newly created money.[10][37]

Now, Bernanke had the gall to explain that it is not money printing because no new currency is put into circulation. Meaning physical paper dollars are not run off a prining press. But electronic dollars ARE created, and he mumbles his way through that.

And of course it is inflationary.