CHS had a decent essay up today regarding what the Fed has been doing. You can find it here.
My primary issue with Mr. Smith is that, for all his relatively deep understanding of the dynamics of our financial system, he does not seem to understand the time horizon of the financial elites' strategy.
Bottom line: we are so far away from "checkmate" that it isn't even funny. We have multiple periodic waves of simulated inflation (i.e. "screwflation") and unmasked deflation to live through before we reach any sort of "checkmate."
Smith's problem, and the problem of pretty much everybody out there, is that his understanding of economics rests upon the lies fed to him by the economic elites. All economic schools of thought are fundamentally meant to obsfucate the reality of how the world actually works. The Austrian school, with which Mr. Smith most strongly identifies, is one of the most cynically manipulated schools of economic thought around, to the point that it borders on being a religion.
The Fed fully understands what it is doing and is doing it anyway. The Fed will succeed in what it is doing because smart people like CHS foolishly believe that the Fed doesn't understand what it is doing. Bernanke knows what he is doing better than smart people like CHS, who can't fathom how evil Bernanke really is.
But it is more comforting to blame being evil on hubris or stupidity than to blame it actually being evil. I fully understand the dynamic and have been guilty of engaging in it myself (more often than I'd like to admit).