Conclusion: “By replacing large decentralized markets with centralized control by a few government officials, the Fed is distorting incentives and interfering with price discovery with unintended economic consequences.” This is true. It lies at the heart of the mess we are in.
….The FED tried to unwind over the last 12 months. They do not mention this. The result: the FED’s panic return to QE3. There will be no unwinding.
I welcome readers to explain how unfunded liabilities (Medicare, Social Security, Pensions) will NOT be defaulted on.