Monetary policy didn't cause the damage to the economy, it camouflaged the damage
Manufacturing Employment versus Fed Funds Rate
I think we all see where I'm going with this...
The basic premise of Monetary Policy is to manage the money supply such that the impact of recessions can be mitigated. All else being equal, investors become risk averse during economic downturns, hence interest rates rise, spreading business failure. This concept of increasing liquidity/loans during adverse conditions, when used responsibly, could have held merits.
Monetary Policy Disguised A Failed Trade Policy
As we see in the chart above, this policy was not used on a cyclical basis, it was used on a secular recurring basis for ~35 years. As manufacturing employment was offshored, the Fed Funds rate fell to lower the cost of money and give the impression of a viable economy.
Instead of allowing time for the economy to heal during recessions, the EXACT OPPOSITE occurred - with each iteration, corporations took the flood of new money as an opportunity to offshore capacity. Basically, politicians at the behest of Multinationals, turned a blind eye to the carnage being wrought to the real economy during these recurring episodes of monetary inflation. Corrupt Federal Reserve banksters have made literally no admission that their policy was essentially moral hazard on steroids. The closest admission we got was from the Bank for International Settlements (BIS):
The BIS admonishes that Central Bank loose money policies have "retarded" policy reforms and are a "recipe for failure". In addition, the global central bank stated the obvious that the underlying global economic issues are not monetary-based and therefore all this additional monetary easing has done is provide 'borrowed' time and additional incentive to spend instead of save and otherwise maintain the status quo.
Just more archaeology for a Saturday night. At the end of this, someone will ask the desperately avoided question:
"What the fuck happened?"
"What the fuck happened?"
