The Lords of Easy Money

If you asked most people what forces led to today’s unprecedented income inequality and financial crashes, few would point to the Federal Reserve. For much of its history, the Fed has enjoyed the fawning adoration of the press. When the economy grew, the Fed was credited. When the economy imploded in 2008, the Fed received accolades for rescuing us.

But here, for the first time, is the inside story of how the Fed has reshaped the American economy for the worse. It all started on November 3, 2010, when the Fed began a radical intervention called quantitative easing. In just a few short years, the Fed more than quadrupled the money supply with one goal: to encourage banks and other investors to extend more risky debt. Leaders at the Fed knew they were undertaking a bold experiment that would produce few real jobs, with long-term risks that were hard to measure. But the Fed proceeded anyway…and then found itself trapped. Once it printed all that money, there was no way to withdraw it from circulation. The Fed tried several times, only to see the market start to crash, at which point the Fed turned the money spigot back on. That’s what it did when COVID hit, printing 300 years’ worth of money in a few short months.

Which brings us to now: Ten years on, the gap between the rich and poor has grown dramatically, inflation is raging, and the stock market is driven by booms, busts, and bailouts. Middle-class Americans seem stuck in a state of permanent stagnation, with wage gains wiped out by high prices even as they remain buried under credit card debt, car loan debt, and student debt. Meanwhile, the "too big to fail" banks remain bigger and more powerful than ever while the richest Americans enjoy the gains of a hyper-charged financial system.

The Lords of Easy Money skillfully tells the fascinating tale of how quantitative easing is imperilling the American economy through the story of the one man who tried to warn us. This is the first inside story of how we really got here—and why our economy rests on such unstable ground.

Leonard dives deep into the workings of the Federal Reserve, unveiling how decisions made in closed-door meetings impact the lives of ordinary citizens. Through meticulously researched narratives, Leonard demonstrates the stark contrast between the perceived role of the Fed as a saviour of the economy and its actual contributions to widening economic disparities. The book sheds light on the complex financial mechanisms that have driven the U.S. economy to its current precipice, exposing the intricate dance between monetary policy and market performance.

This gripping and revealing book is essential reading for anyone looking to understand the underlying forces shaping today's economic landscape. With unparalleled access to key figures within the Federal Reserve, Leonard provides an eye-opening account that challenges conventional wisdom and offers a sobering look at the long-term implications of the Fed's policies on future generations.