Martin D. Weiss: Last week, I showed you how the Fed’s monstrous 6-year monetary expansion is mind-boggling in the extreme. To recap …
In the chart below, just look at the relatively gradual slope of money growth in the 1990s and 2000s — before the Lehman Brothers failure. And bear in mind that even that “slower” pace was considered irresponsibly rapid by many experts.
Next, look at the sudden explosion that began immediately after the Lehman Brothers failure!
That’s when the Fed threw all its old rule books into the East River. And that’s when the Fed flew off on a new, high-risk trajectory into the outer space of monetary policy.
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Then, see how the Fed’s immediate response to post-Lehman crisis (QE1) was replicated not just once, but twice — with QE2 and QE3.
Last, consider these outrageous facts:
Fact #1. Immediately prior to the Lehman Brothers failure, the Fed reports that the monetary base stood at $849.8 billion.
This past October 30, it was $3,607.7 billion. That’s an expansion of $2,757.8 billion — over $2.7 trillion.
Fact #2. This $2.7 trillion expansion has all taken place within just six years and one month.
If, instead, the Fed had continued to expand the monetary base at a normal pace (by the same amount as it had since 1961), it would have taken nearly 150 years to come this far.
Fact #3. Prior to 2008, there were only two times the Fed embarked on an extremely rapid monetary explosion of this type — first in anticipation of the widely feared Y2K bug; and later, in the aftermath of the 9-11 terrorist attacks. But as of the latest tally, the post-Lehman QEs have been
- a whopping 43 times larger than the dramatic Y2K expansion, and …
- an unbelievable 69.5 times larger than the Fed’s explosive reaction to 9/11.
But the most alarming fact of all is this …(...)Click here to continue reading the original ETFDailyNews.com article: Complete Monetary MadnessYou are viewing an abbreviated republication of ETF Daily News content. You can find full ETF Daily News articles on (www.etfdailynews.com)
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