The U.S. central bank is joining the financial equivalent of the Paris Agreement, becoming one of the last of its peers to do so.
Tim Geithner, Ben Bernanke and Hank Paulson dealt a catastrophic blow to public faith in American institutions.
Simply put, the Fed pulled off a magic trick that would leave Houdini gasping. Janet Yellen and the Fed took the made-up money and bought Wall Street assets that would have otherwise crashed and gave money to Wall Street banks that would have otherwise gone bankrupt...with no strings attached.
The Federal Reserve's core guiding belief is that economic stimulus boosts economic growth, thus increasing employment opportunities, payrolls, tax revenues, corporate profits, retirement security and Wall Street wealth.
Progressive nerds love the idea.
The fact that the government is utterly financially unconstrained in just the way Trump noted today is the hugest, most subversive Truth he has told to date. And of all the truths he has ever told, it is the one that libertarians should be proclaiming the loudest.
Monetary economics is gasping for breath. The usual links between the money supply, inflation and GDP seem tenuous after the Great Financial Crisis.