by Peter Schiff, Schiff Gold:

In a recent interview with Forbes, economic commentator and historian Jim Grant warned that we haven’t fully felt the inevitable fallout from the “free money era.”

I think that the consequences of more or less 10 years of proverbially free money are going to play out in the credit markets.”

Grant traces the root of today’s problems back to 2008 when the Federal Reserve became “completely irrational.” The central bank pumped trillions of liquidity into the economy with three rounds of quantitative easing. During the pandemic, the Fed doubled down on this extraordinary monetary policy. It also slashed interest rates to zero in 2008 and held them there for nearly a decade. This loose monetary policy caused all kinds of distortions and malinvestments in the economy and incentivized massive levels of debt.