Monetary Reform
Jan 8, 2016Our monetary policy continues to punish the saver and reward the debtor. Everyday workers are forced to ‘chase yields’ with risky investments while politicians continue to finance our massive deficits with a near zero interest rate policy. But monetary policy cannot cover for bad fiscal policy forever and it has already resulted in a dollar worth less than half its 1970s counterpart. One reason the Fed is monetizing the debt is due to their misguided mission to promote ‘maximum employment’ through easy money-thus creating economic cycles of boom and bust. The Fed’s mission should be ensuring a stable dollar and not creating asset bubbles that eventually burst.