I agree with you another round of QE is increasingly being talked about although more timidly .

Depending on a lot of things it could happen sometimees next spring , the up coming election in the US should put a lid on those rumours and the result of the elections might determine wether or not there will be further QE .

I think most republicans would oppose more QE unless no other choices remain . But such a situation seems possible since the FED seems to have few other tools available if more stimulate is needed to revive the economy in the US .

In any case it will be a hard sale and the US will have to go that path alone . the EU seems to be on the path to tightening fiscal policy and Asia won't need further QE .

As we remember China's stimulus package was quite larger then the US one in comparison to GDP , while their problems where smaller .

Like you i don't see another crash of the economy or the stock markets in a predictable future we're more likely to withnees a very slow recovery and sideways markets with high volatility .

Another round of QE would possibly inflate the stock markets for a while reporting the problems further down the road .

This may sound like deja vue but i think the answer to the world economy lies in Asia and more widely with the BRICKS countries .

The world economy seems to be evolving in two parts now as the center of growth moves towards developping countries with large populations .

In the following article on gold's future the author refers also to QE .

http://www.mineweb.co.za/mineweb/view/mineweb/en/page102055

Double dip or recovery - Has gold had its day?

Tuesday , 20 Jul 2010 Whether we are entering a double dip recession or a mild recovery gold will perform well in both scenarios.