Hi doma,
You are arguing extremes. The most productive solutions don't exist at the poles. They exist in the temperate zones.
The Fed isn't printing to infinity. It is diluting the value of the dollar gradually as the dollar's value pushes Treasury bonds against the zero bound. The fact interest rates are pushing against the zero bound tells you the value of Treasury bonds is too high. Deflation discourages consumption and investment, which makes the economy function poorly. So some dilution is needed. Dilution encourages people not to sit on their money.
If inflation heads in the opposite direction, then leaning the other way (to stabilise the value of the dollar) makes sense also.
QE tends to reduce the value of existing debts. That is something we need to happen. But not all at once. Gradual erosion is the way to manage things, in my view. It's proving a struggle and that is partly because Europe is a mess.
Re gold - not a falsehood at all. Once again, you just imagine a value of gold to fit your desired scenario. But gold isn't valued that highly by the market.
Better to use plutonium. Or oil reserves. Or all sorts of resources. But that is what we do.
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