Our current Fed based economics is not “sustainable.” It encourages reckless speculation with other people’s money, which in turn facilitates the plowing under of bazillions of acres of natural land (in a multitude of ways). Easy money means death for large parts of the biosphere, yet many on the “Left” continue to defend deeply destructive “easy money.”
Not a perfect examination of the issue, but a pretty good intro.
Since the dollar continues to be the world reserve currency, and since the mega banks float like clouds over the entire planet paying little attention to borders, we shouldn’t be surprised. But that the Fed has essentially given away $1 trillion to non-American banks is pretty amazing . (Not that American banks are any better than the foreign ones of course.)
As the world’s central banks keeping merrily “printing” new currency, it is hard to know how much the money supply is growing. It is especially hard to keep up with it because you have to know how to define the money supply, much less estimate changes to it.
Bill Fleckenstein explains that the reason the economy doesn’t feel like it’s recovering is because it’s not. The rise in asset prices and bonds is purely a creation of central banks printing with unprecedented abandon. Like the tech bubble and the housing bubble, the current Fed driven asset inflation will end badly. But when it ends this time the scale will be much larger.