by Jason Simpkins, Outsider Club:
The Federal Reserve Bank of St. Louis published an interesting paper this week.
It used a lot of technical phrases like “monetary base” and “velocity” (which I’ll be happy to explain), but the point was pretty simple…
Fed policy, the paper argues, has failed. It’s restrained growth, rather than accelerate it. And worse, it’s multiplied the money supply while simultaneously forcing that newly-created cash to the sidelines, where it’s being “hoarded.”
That, in turn, has kept headline inflation rates subdued.
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