Tinkerers. Manipulators. Mad scientists.
Take your pick of descriptive names. They all apply to the unelected bureaucrats ensconced at the Federal Reserve in Washington, D.C.
Not content with helping to cause massive, violent swings in the economy and investment markets going back to the 1990s. Unsatisfied with their contributions to the biggest technology stock bubble ever … and the biggest housing bubble ever … they ran amok in the wake of the Great Recession.
They slashed interest rates to an unheard of zero percent. Then they printed so much money as part of multiple rounds of QE, that they exploded the Fed’s balance sheet to almost $4.2 trillion!
These moves decimated the savings returns of average Americans. They fueled rounds of reckless speculation in the asset and real estate markets. They fueled a massive round of “yield insanity,” with money fleeing the U.S. to every nook and cranny of the financial world.
|The Federal Reserve printed so much money, that its balance sheet exploded to almost $4.2 trillion.|
Worse, the Fed inspired even nuttier practices among other members of the global central banking cabal.
The Bank of England. The European Central Bank. And especially the Bank of Japan. They’ve all embarked on the biggest round of global money printing in world history — impacting global wealth in untested and volatile ways.
There’s no telling how this mad monetary experiment will end. Puerto Rico gave us a taste. But considering the disastrous consequences of the tech bust … and the housing bust after it … it’s a virtual lock that this experiment will blow up in other central bankers’ faces too!
Until next time,