Tons of money.

The Lords of Easy Money

If you asked most people what forces led to today’s unprecedented income inequality and financial crashes, no one would say the Federal Reserve. For most of its history, the Fed has enjoyed the fawning adoration of the press. When the economy grew, it was credited to the Fed. When the economy imploded in 2008, the Fed got credit for rescuing us. But here, for the first time, is the inside story of how the Fed has reshaped the American economy for the worse. It all started on November 3, 2010, when the Fed began a radical intervention called quantitative easing. In just a few short years, the Fed more than quadrupled the money supply with one goal: to encourage banks and other investors to extend more risky debt. Leaders at the Fed knew that they were undertaking a bold experiment that would produce few real jobs, with long-term risks that were hard to measure. But the Fed proceeded anyway…and then found itself trapped. Once it printed all that money, there was no way to withdraw it from circulation. The Fed tried several times, only to see the market start to crash, at which point the Fed turned the money spigot back on. That’s what it did when COVID hit, printing 300 years’ worth of money in a few short months. Which brings us to now: Ten years on, the gap between the rich and poor has grown dramatically, inflation is raging, and the stock market is driven by boom, busts, and bailouts. Middle-class Americans seem stuck in a stage of permanent stagnation, with wage gains wiped out by high prices even as they remain buried under credit card debt, car loan debt, and student debt. Meanwhile, the “too big to fail” banks remain bigger and more powerful than ever while the richest Americans enjoy the gains of a hyper-charged financial system. The Lords of Easy Money “skillfully” (The Wall Street Journal) tells the “fascinating” (The New York Times) tale of how quantitative easing is imperiling the American economy through the story of the one man who tried to warn us. This is the first inside story of how we really got here—and why our economy rests on such unstable ground.

저자

Leonard Christopher

출판

Simon & Schuster

출판일

2023.01.10

  It is about the FOMC and its recent hidden story of Feds decisions.
  They had prepared in several decades for supporting the american economy. Learning from Lehman crisis and the other small promblems. The Hoenig said 'NO' serially, because he thought that the QE does not good for the economy in the long term. When I told this my husband, he said that " that is because the Powel has been the chairman of the FOMC. The Yes men can be the winner.". In history, there are always optimist and pessimist in some aria, the pessimists are lose in the system.

I know Hoenig was right, totally agreed when the flood of liquidity in the market. But in the systems and bureaucracy, the subtle man can be the agressive talker like Hoenig. It was so sad because I was the one like him, personally.

Anyway, the Fed sprinkled tons of money in past two decades so that they could have maintained low interest rates in the market. All of members are addicted in these ZIRP in about twenty years. Now the interest rates became upward, but we are expecting lower the interest rates because Powell talked about it.

Nobody knows the future of the world economy so that we need to prepare the uncertainty.