I recently gave a talk to the Financial Planning Association of Kentucky. The slides from the presentation are below and readers of this blog with be familiar with many of them. In case you are not familiar, below is the slide outline and where to go for more information. The audience asked many questions that led the discussion beyond what was presented on the slides, including the Triffin Dilemma for US treasuries, why the Fed likes core PCE, and what is holding back the recovery. It was a lively and fun discussion.
(1) Monetary Policy Tightened During the Recession. See here, here,and here.
(2) The Fed Allowed the Money Supply to Collapse. See here, here, and chart to the right.
(3) The Fed Did Not Gobble Up the National Debt. See here and here.
(4) The Fed Did Not Artificially Lower Treasury Interest Rates. See here, here, and here.
(5) The Fed Actually Wants Inflation Between 1% and 2%. See here.