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Wednesday, March 12, 2014

The Fed Has Failed (And Will Continue To Fail), Part 1

The Fed's policies have been an unqualified success for financiers and an abject failure for the bottom 99.5% who have to work for a living.

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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1 comment:

  1. Kennedy tried to stop it..but failed...its robbery of our prosperity and our childrens future...THE FED IS THE ROOT OF THIS MESS..while the bankers have robbed us blind..you and me are left holding the bag

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