Bloomberg/Jeanna Smialek/2/8/2019
“Federal Reserve Bank of San Francisco President Mary Daly suggested that the central bank could decide to use its balance sheet as a routine part of how it guides the economy, not just as a last-ditch measure to deploy in emergencies.”
USAGOLD note: We used to call it “printing money.” Then we changed the label to “monetization.” After the 2008 fiancial crisis, we renamed it “quantitative easing.” But it is still just plain-old printing money. Now, a contingent within the Fed wants to make it a permanent part of Fed policy with or without the benefit of a crisis. Isn’t that pretty much what Germany did after World War I? They, too, believed it came with no consequences until one day a virulent inflation suddenly took hold. . . .
