Fed Stresses Its Commitment to Low Rates for the Long Run

[bucolic_frolic]

4. Please recheck your thoughts also, low rates got us into this mess from 2009 through the present

Loose money is the only remedy the Fed has, and while it is advisable in the short term because payrolls are diminished and shrunken, in the long run they are destroying the currency because as the 1970s taught us, they will be unable to mop up the excess liquidity before inflation ramps up.

Bernanke ran QE1-2-3 then some more, and Powell has loosened the Fed's balance sheet to include buying corporate bonds. It's been all over the news for the past year, and his loose money to support Trump's growth is widely known.

The reason we have such low interest rates is QE1-2-3 and its successors. You can't have 0-2% interest rates with tight money policies.

Cycles of boom and bust are created by periods of loose and tight money as well as government cycles of deficit spending and austerity.

What did the Fed do in 1929? After a period of loose money they tightened beginning in March.

I've been called a lot of things, but Tea Party monetarist is not one of them because I don't believe in them, don't follow them, don't support Friedman.