“Distilled to its roots, the Fed has been manufacturing “savings” from thin air for the better part of a decade. When the financial crisis hit in 2008, American savings were depleted, so the Fed had to step in to produce savings (to finance huge government deficits). Now the Fed is attempting to remove that “savings”… at a time when:”
- The private sector is experiencing falling savings.
- The government is likely on the precipice of expanding its dis-saving in the form of greater deficits.