How Could It Not Be?

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Let’s imagine the year is 2028. Let’s further imagination this is the scenario:

  • The Federal Reserve is finishing up its twentieth year of “extraordinary accommodations” that began with the Great Financial Crisis, and interest rates remain nominally at 0%;
  • The national debt has crossed the $50 trillion level;
  • The US dollar has lost its reserve currency status and has plunged against other currencies;
  • The Dow is approaching the 100,000 mark for the first time, much to the excitement of the media;
  • The employment participation rate has slipped under 50% for the first time in the country’s history;
  • Every citizen is guaranteed $50,000 in U.S. Digital Dollars every year for their living and housing expenses.
  • Recent testimony by the Chairman of the Federal Reserve reveals that they are continuing to monitor the economic data, they believe it is too soon to taper, and they will deploy whatever tools they require in order to fulfill their dual mandate.

Sound implausible? You know what sounds more implausible? The Fed telling America to grow a pair and build the economy on its own.

Seriously. Tell me how the future could be any different. Tell me how the Fed pulls the plug and leaves it unplugged. Go ahead. I’m awfully curious.