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A good read on QE is Currency Wars by James Rickards. It isn't written as a dry traditional economic book while covering the monetary history of last 2 centuri
by lowdose 7y ago
A good read on QE is Currency Wars by James Rickards. It isn't written as a dry traditional economic book while covering the monetary history of last 2 centuries. I suspect the book is not mentioned often being published in 2012 it predicted the destruction of the dollar by the QE policies. The predictions of the book can still become reality because QE is a monetary experiment which increases the supply of money at unprecedented level.
Creating money out of thin air and holding more than 4 trillion dollar [0] on assets is not a healthy situation for the FED. [0] https://fred.stlouisfed.org/graph/fredgraph.png?g=lFm1 https://fred.stlouisfed.org/graph/fredgraph.png?g=lFm1
- jonahbenton 7y agoDefine and defend "unhealthy." Money is created out of thin air every day. That's how banking works. There are hundreds of T of undervalued assets around the world. You can buy a beautiful castle in Sicily for $100. The Fed's holdings are nothing. The assets on the Fed balance sheet are also largely inert. Like the archeological underpinnings of a skyscraper. Dig and you will find interesting things, could put them into museums. But they do little from a structural perspective. The translation of capital into productive work and actual value worldwide is still extremely inefficient. This inefficiency is the guard against inflation. Pay more attention, as always, to actual businesses, their P&Ls, projections of future cash flows.