How Central Bankers Transformed The Financial Markets And Moved The Inflation Ogre From Main Street To Wall Street

There is no doubt that the Fed has become the engine of financial asset inflation on Wall Street during the last 30-years, thereby supplanting its traditional propensity to fuel goods and services inflation on main street when it got too aggressive in supplying new reserves to the old-fashioned fractional reserve banking system.

Our purpose here is to outline the drastic morphing of the system in recent decades that underlies this epochal shift—a shift that displaces some of the rules of sound money from earlier, simpler, more honest times.