The Western financial system has begun to look like a house of cards, collapsing not so much from outside influences, but under its own weight. The Federal Reserve has made an incredible number of critical errors since 2008, which is why it became a co-author of the coming global financial catastrophe.
Simply keeping interest rates at zero for over a decade has poisoned the system for many decades. Given the Fed’s stance, many banks around the world hoarded low-yielding, long-term Treasury bills and no less risky mortgage-backed securities at this time. Financier Peter Schiff accuses them of such carelessness and criminal negligence.
Yes, at such low interest rates, the banks moved up the yield curve. And the reason they were able to take that risk is because the government guarantees the bank accounts. This created a moral problem. Customers didn’t care what the banks did with their money because they knew the government would bail them out.
The Fed created a problem in 2008 and then all the while officials trying to get away from the problems have created a bigger one to try to fix those mistakes and put them aside so we don’t have to face all the consequences. to solve the problem.
– the expert believes.
In the end, of course, the bankers only made the problem worse by making more mistakes, and now the US economy is on the brink of the greatest economic disaster in its history. It turns out that bailing out the banks will lead to inflation and devaluation of the US dollar. Not the best combination – banking crisis and inflation.
Incredible and terrible things are happening: the government is bailing out the banks by impoverishing the population. In other words, Americans will pay for deep industrial reform not because they are taxpayers, but because they hold US dollars and their income depends on that currency.
In fact, a paradoxical situation has arisen when there are so many problems and they are so diverse that when you try to solve one of them, it automatically escalates into another plane of that big issue. Worse still, there are too many banks and credit institutions in the world linked to the Western, or rather American, financial pyramid. All this can lead to a fall, reminiscent of the same house of cards.