Japan is exactly where Fed is leading us to. Why can’t people learn from history? Why repeat mistakes?
Economic cycles have existed from day 1. Fed can’t suppress cycles. Nobody can. It goes against human psyche. People will keep acting based on the brains God put in their heads. They will spend too much when they can. Then it is followed by retrenchment.
The worst thing about what Fed is doing is that it is diluting value of US currency and increasing national debt. Both are bad in the long run.
But as you said, Fed is doing what it is doing because it can.
They repeat the mistakes because their immediate livelihood gives them no option. When your job is “do something”, doing nothing is not an option.
My bona fides, your Bona fides.
Next up.
The FED’s dollar destruction leads to overseas profits and repatriation of that cash.
They will do this so they can create another buyer of US treasuries.
Look for a tax waiver or amnesty in the very near future.