Loose Monetary Policy Leads To An Economy Predicated On Grotesque Levels Of Consumption Speculation And Indebtedness

Mos in MarginOfSafety writes Loose monetary policy doesn’t magically create economic activity out of nothing.  The apparent short term gains it achieves come at a cost, often hidden, often lying far off in the future.  Because of the political attractiveness of trading vague future costs for immediate tangible gains, monetary policy has been recklessly abused by the Fed since 1980s.  The consequence for America has been a shift from an economy geared toward a balance of production, saving and investment to an economy predicated on grotesque levels of consumption, speculation and indebtedness.

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