In 1933, the US Federal Reserve Bank began massive ‘open market operations’. It bought $2 billion of government bonds, and flooded the system with liquidity. $2 billion in 1933 was a massive amount. It’s about $35 billion in today’s money, but of course, the ‘real’ (inflation-adjusted) economy was much smaller then. For example the population … Continue reading 2010 to 2011; A New Year Ahead