There's a saying everyone knows: "when you have a hammer, every problem looks like a nail". The wisdom in here is deeper than first glance. It speaks to not being able to get the right answer until you ask the right question. It speaks to the confusion academics feel when the world doesn't fit into their neat little theoretical boxes. It speaks to forcing the problem into your world view rather than seeing what's really there. QE3 is coming, and as Kevin has said about other things, since the results don't match their model, the motto is "do it again, ONLY HARDER!".
This is the problem we face. Our leaders have the wrong tools for the problems and are incapable of seeing what to do. Items from today's news in various places:
Ron Paul today asked Bernanke whether or not he watches the price of gold and if he thinks gold is money. Although Bernanke admitted that he does watch the price of gold, Bernanke said that gold is not money, but it is only an asset. Bernanke explained that central banks only hold gold as a "tradition". (source)