After five long
years of politicos and the financial media glorifying the Federal
Reserve's policies as god-like in their power and efficacy, let's take a
quick look at the results of these vaunted policies: ZIRP (zero
interest rates), (QE) quantitative easing, both of which are ways of
shoving nearly limitless, nearly-free money (a.k.a. liquidity) into the
banking sector, where all this free money is supposed to filter into the
global economy, working miracles of prosperity.
Let's start with a
chart of the Fed's balance sheet, which reflects just how much money
the Fed has created and pumped into the financial system. $4 trillion is larger than the entire GDP of Germany, and roughly 25% of U.S. GDP.
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