Last I checked, our Republic is almost 238 years old. The Fed's been around for 101 years, even though we had several abortive attempts at Central Banking prior to that. Our Founders and several Presidents fought very hard against central banking, because they knew that it was nothing more than a collusion of private banks seeking a profit. QE and ZIRP are profit centers for the big banks, although they have sold it as a boon to the 99%. It's the great con job of our day. Our Fed has done a great job occasionally...even a broken clock is right twice a day. However, in the last 30 years it has embarked on a trajectory of lowering interest rates until finally they have reached the zero rate bound. To continue easing, they began QE. What you don't seem to understand is that when a country embarks on money printing, it means that they have exhausted all other policy measures and that they are in the last throws of economic collapse from over-indebtedness. Financial and economic instability is a symptom of over-indebtedness and the monetary policy manipulations that our Fed has undertaken have been an enabler for increased indebtedness by Congress. So what is the ultimate impact of too much debt. Very simple. Too much debt lowers growth rates, as more money is diverted from capital investment to paying interest and rolling over debt reaching it's due date. Need proof? See the US GDP growth rates, as our debt has ballooned. In the years that we take on massive debt, such as in the WWII years, you can get nice growth rates, but it costs you in terms of future growth. That's all debt is...pulling forward demand from the future into the present, which mathematically reduces future growth. Thank you, Fed. Thank you, Congress. There's no free lunch.
multpl.com
multpl.com
DateUS Real GDP Growth Rate|
| Dec 31, 2013 | 2.53% | | Dec 31, 2012 | 1.95% | | Dec 31, 2011 | 2.01% | | Dec 31, 2010 | 2.77% | | Dec 31, 2009 | -0.24% | | Dec 31, 2008 | -2.81% | | Dec 31, 2007 | 1.89% | | Dec 31, 2006 | 2.41% | | Dec 31, 2005 | 3.04% | | Dec 31, 2004 | 3.12% | | Dec 31, 2003 | 4.34% | | Dec 31, 2002 | 2.03% | | Dec 31, 2001 | 0.18% | | Dec 31, 2000 | 2.86% | | Dec 31, 1999 | 4.86% | | Dec 31, 1998 | 5.00% | | Dec 31, 1997 | 4.39% | | Dec 31, 1996 | 4.45% | | Dec 31, 1995 | 2.28% | | Dec 31, 1994 | 4.13% | | Dec 31, 1993 | 2.62% | | Dec 31, 1992 | 4.33% | | Dec 31, 1991 | 1.23% | | Dec 31, 1990 | 0.65% | | Dec 31, 1989 | 2.78% | | Dec 31, 1988 | 3.84% | | Dec 31, 1987 | 4.45% | | Dec 31, 1986 | 2.94% | | Dec 31, 1985 | 4.28% | | Dec 31, 1984 | 5.63% | | Dec 31, 1983 | 7.83% | | Dec 31, 1982 | -1.40% | | Dec 31, 1981 | 1.29% | | Dec 31, 1980 | -0.04% | | Dec 31, 1979 | 1.30% | | Dec 31, 1978 | 6.68% | | Dec 31, 1977 | 4.99% | | Dec 31, 1976 | 4.33% | | Dec 31, 1975 | 2.56% | | Dec 31, 1974 | -1.93% | | Dec 31, 1973 | 4.02% | | Dec 31, 1972 | 6.84% | | Dec 31, 1971 | 4.37% | | Dec 31, 1970 | -0.15% | | Dec 31, 1969 | 2.07% | | Dec 31, 1968 | 4.96% | | Dec 31, 1967 | 2.70% | | Dec 31, 1966 | 4.51% | | Dec 31, 1965 | 8.48% | | Dec 31, 1964 | 5.15% | | Dec 31, 1963 | 5.17% | | Dec 31, 1962 | 4.28% | | Dec 31, 1961 | 6.37% | | Dec 31, 1960 | 0.86% | | Dec 31, 1959 | 4.55% | | Dec 31, 1958 | 2.67% | | Dec 31, 1957 | 0.36% | | Dec 31, 1956 | 1.99% | | Dec 31, 1955 | 6.57% | | Dec 31, 1954 | 2.74% | | Dec 31, 1953 | 0.53% | | Dec 31, 1952 | 5.35% | | Dec 31, 1951 | 5.49% | | Dec 31, 1950 | 13.41% | | Dec 31, 1949 | -1.50% | | Dec 31, 1948 | 3.80% | | Dec 31, 1947 | -0.01% | | Dec 31, 1946 | 10.66% | | Dec 31, 1945 | 48.83% | | Dec 31, 1944 | 76.88% | | Dec 31, 1943 | 78.22% | | Dec 31, 1942 | 64.42% | | Dec 31, 1941 | 33.70% | | Dec 31, 1940 | 19.38% | | Dec 31, 1939 | 23.92% | | Dec 31, 1938 | 24.99% | | Dec 31, 1937 | 43.21% | | Dec 31, 1936 | 34.55% | | Dec 31, 1935 | 3.77% | | Dec 31, 1934 | -10.81% | | Dec 31, 1933 | -26.34% |
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