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The problem with crack is that apparently you can’t get enough of it. Even as you get more, you still need more for the high. The FED has been complicit in joining with politicians in Washington in providing financial crack to our economy and its consequences are going to be horrendous. Keep doing crack and you will die. Quit doing crack and you will feel like you are going to die.
We will soon be experiencing that feeling economically. This St. Louis Fed chart link below should remind everyone of us not only of the financial dangers of propping up asset values as the FED has done, but the social inequity that comes with the government’s push here.
The FED balance sheet has ballooned 10 fold over the last ten years. This is unprecedented. And from the standpoint of income disparity it makes the rich richer and the rest of us poorer in relative terms. The vital middle class has been one of the keys to our political stability. Losing this based on government policy is insane. Political revolutions often are fueled by income inequity...and accordingly we need to think about how dangerous the FED’s course really is. We are being set up for disaster.
https://fred.stlouisfed.org/series/WALCL
Sincerely,
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