Since 2009, the Fed has added about $3.6 trillion in QE “honey” to the nation’s finances (by buying government bonds with newly created cash). And it slashed interest rates until it hit the “zero bound.”
That is what boosted stock and bond prices – and debt – to the highest levels ever seen. And from the incoming Fed chief, Jerome Powell, came the kind of reassurance you’d expect. “Powell says Fed alert to developing risks,” reported Bloomberg.......We almost doubled over in laughter. Powell really is out of it. Just like Yellen. And Bernanke. The clear and present danger to the financial system is him.