OPINION:
Incomes will always fall when the total money supply in the country falls. That was exactly what happened in 2008 when the Federal Reserve shrank the money supply at a rate of 6 percent annually.
The results of lost income continue, as does the shrinkage in the availability of business bank loans. There have been major winners, too: the Fed insiders who knew in advance of its actions. They made out like bandits in all the interest-rate-sensitive securities and bought up businesses cheaply that were hurt by the decreasing number of business bank loans. The Fed likely intentionally shrank the money supply to help its friends. It’s now time to shrink the power of the Fed.
CARL OLSON
Woodland Hills, Calif.
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