by John Rubino, Dollar Collapse:
A recurring theme of modern financial crises is the “temporary” nature of the extreme steps governments take to fix the system.
Recall that the massive increase in the Fed’s balance sheet during its Great Recession asset-buying binge (which is another way of saying “currency printing binge”) was going to be reversed out.
But a funny thing happened on the way back to normal: We couldn’t get there from here. The Fed actually did raise interest rates and shrink its balance sheet a bit in 2018, but towards year-end the financial markets melted down. Here’s the S&P 500: