Federal Reserve Created Bitcoin and Other Percolating Bubbles – Michael Carino, Greenwich Endeavors

By Greenwich Endeavors

The Federal Reserve’s tools for achieving its dual mandate
of low inflation and full employment manipulate interest rates and therefore
markets. This manipulation of rates reverberates
globally. Their manipulation historically had been more light handed and
invisible to most of the public. However, over the last decade, their impact on
interest rates and yield levels have been the most dramatic in the history of
the Federal Reserve.

Whenever you have policies that are extreme, it is best to
stay at extremes for the shortest time possible. Newly employed policies always have unknown
and unexplored side effects that can prove to be harmful and detrimental. For instance, pharmaceutical companies have a
long testing period before new products can be offered to the public. But monetary policy works with impunity towards
negative consequences. No accountability
and the subterfuge of finding other scape goats encourage testing these extremes.

During economic downturns, the Federal Reserve experiences
pressure from politicians and the public to act in whatever manner necessary. Pressure to adequately address what are normal
and healthy corrections in long business cycles is smothering and the Federal
Reserve members oblige. But obliging
over the past decade without reverting policy back to normal has created unprecedented
low levels of interest rates and trillions …read more

Source:: ZeroHedge