Robert Lenzner, writing at Forbes, looks at the difficulties facing the next Fed Chair. The main challenge will be liquidating the approximately $3 trillion of securities acquired by the Fed as part of Quantitative Easing (QE). Amongst the Fed’s holdings are 36% of all Treasury securities between 5 years and 10 years in maturity plus 40% of those government bonds over 10 years in maturity as well as 25% of all the mortgage backed securities not owned by Fannie Mac and Fannie Mae. The trick will be to unwind QE before it causes hyper-inflation without throwing the economy into recession. If that sounds impossible, or if you believe the economy is already suffering from Fed-created inflation and economic stagnation, congratulations. Your understanding of economics surpasses that of most people in DC and Wall Street.
For a hundred years the Federal Reserve has sown economic turmoil, enriched special interests, and weakened the average American’s standard of living. And it has done all this in secret. If you want to take the first step toward real change in monetary policy please support Campaign for Liberty’s Audit the Fed money bomb.