The unprecedented expansion of the Federal Reserve’s balance sheet over the last few years looks like it may be setting citizens up for a “bond bubble,” and future currency crisis of historic proportions. Looking over the $17 trillion in national debt and the Fed’s creation of over $3.5 trillion all on its own, should give even a high school dropout with basic math skills pause. Now I know I may be preaching to the choir, but there is a large percentage of the population that is comfortable with, or oblivious to, the spiraling debt. “The deficits don’t matter,” is often their flippant claim. BS, spouted off by elected officials like Dick Cheney, and akin to a two pack-a-day smoker justifying continuing to smoke because he hasn’t gotten cancer, yet. These deficits do, in fact, matter when they get too large. And guess what? OUR DEBTS ARE TOO LARGE!
Outside the BOX: Bubbles, Part I
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