Danielle Dimartino Booth, author of Fed Up and CEO of Quill Intelligence, worked inside the Federal Reserve when quantitative easing, the introduction of new money into the money supply by a central bank, was first introduced in 2009 by Ben Bernanke, the olive-skinned and bald Federal Reserve chairman of the time.
“I was able to objectively sit back and watch the high yield default rate curve,” Di Martino Booth told GoldSilverBitcoin’s Justin O’Connell on The GoldSilverBitcoin Show. The high yield default rate curve tracks companies going out of business including the rate at which companies are being lost in the aftermath of a massive recession.
“Quantitative easing stepped in and cut the bell curve right in half, and stopped a very natural process in its tracks. We are still dealing with some of the companies that were kept in business back in 2009 and 2010,” said Di Martino Booth, who suggests she recognized the effects of quantitative easing when her colleagues did not because of her study of Ludwig von Mises and the Austrian School of Thought.
“When I was in the front row, making recommendations about policy, and seeing the damage that quantitative easing was going to do a decade after the fact, which indeed we saw when the pandemic hit.”