The Federal Reserve has pumped trillions of dollars into the economy through its quantitative easing programs. This has generated a surge of inflation. But there are other less obvious impacts from the Fed's extraordinary monetary policy. It conceals risk. Everybody sees a "booming" economy and assumes everything is fine. But underneath, the entire thing is rotting from the inside.
If we look closely, we can see the signs of misallocation and malinvestment in the economy.
For instance, look at the bond market. Despite surging inflation, Treasury yields have remained stubbornly low.