The Sleeper Issue That Could Destroy the Economy

[bucolic_frolic]

2. That's hard to understand and therefore hard to think about.

We usually worry about crashes in the US economy. They happen for cyclical reasons, or due to debt implosion. We've had them from wars, from an attempt to create a national bank, from overbuilt sectors of the economy.

Making the Federal Reserve moot is another matter. Expanding the money supply without barriers. Greenspan had low interest rates, Bernanke had QE1-2-3 and Twist, Trump had Stim. They pumped a lot of liquidity into the economy over a 22 year period to keep it going.

Liquidity without restraint has not been seen since colonial times I think to say, when US bonds and currency became worthless, when bond holders feared they would not be paid, and maybe some weren't - I never researched the issue nor heard it spoken of in econ classes. But of course the greenback is becoming the Crypto Stable Coin currency, haven't you heard?