The following commentary comes from an independent investor or market observer as part of TheStreet's guest contributor program, which is separate from the company's news coverage.

NEW YORK ( TheStreet) -- Even though the Misery Index in the U.S. has now hit a 28-year high, the Fed is still mulling over new ideas on how to create yet more inflation. The Misery Index -- which is simply the sum of the unemployment plus the rate of consumer price inflation -- rose to 13.0.

It wasn't Ben Bernanke this time squawking about the virtues of money printing. It was one of the Counterfeiter in Chief's minions, Fed Governor Dan Tarullo, who stated in a speech last week: "I believe we should move back up toward the top of the list of options the large-scale purchase of additional MBS." Buying more mortgage securities will only ensure that the money supply expands faster as the value of the dollar crumbles expeditiously against the stuff you and I consume.

But it's not only the U.S. that is working diligently on sending the Misery Index close to all-time highs. The European Central Bank is steadily acquiescing into the practice of monetizing most of Europe's debt. As the continent sinks slowly into a debt-fueled recession, the ECB has been brought more and more to the fore. This isn't any surprise to this writer, as the notion of a bailout coming from leveraging up already insolvent nations was absurd from the start. The buyer of Europe's bankrupt debt has to be their central bank.

Back on the home front, the talk about large-scale purchases of mortgage securities by the Fed sounds like Quantitative Easing 3 is just around the corner. Is it really any wonder why the price of gold is so hard to knock down? Tarullo is in complete accord with his boss in believing that the resolution of this economic malaise is to bring down the cost of money. But the truth is that interest rates have never been lower; and yet the economy is still dying. And the act of creating more inflation won't revive the economy or raise the living standards of most Americans. It will just continue to crush savers and create further devastating imbalances in the economy.

It may come as a shock to the Fed, but the reasons why consumers aren't able to buy houses are because their level of debt is too high, unemployment rates remain elevated and the price of homes is still out of line with average incomes. By pursuing a policy of dollar destruction, the Fed will only ensure that the eventual level of interest rates will rise inexorably, as inflation destroys whatever real growth is left in the economy.