From 2008 To The SVB Bailout, New Documentary Traces The Fed’s Same Old Recklessness

The recent bailout of Silicon Valley Bank is just the latest example of the Federal Reserve’s damaging effects on the economy and banking system, according to “Age of Easy Money,” a new two-hour documentary produced for the PBS series “Frontline”. The documentary’s production couldn’t have been more timely, given the ongoing debate on the Federal Reserve’s interventionist policies and how it distorts financial markets. One of the key takeaways from the documentary is the lack of direct accountability, as none of the central bank’s decisions, from the quantitative easing programs to the declaration of a bailout for depositors in Silicon Valley Bank, were voted on by Congress.

The documentary also examines how the Federal Reserve’s exorbitant actions have had long-term consequences. The program notes how interest rates have been continuously decreasing, and debt rising steadily, which encourages investors to take on risks to achieve desired returns. As the documentary chronicles, investors have moved from mortgage-backed securities to speculative assets like cryptocurrencies, leading to further instability in financial markets.

“Age of Easy Money” argues that such actions have become a pattern for the Federal Reserve, as it uses its monetary policy to expand its remit into broader economic and fiscal policy. The documentary underscores how such a strategy invariably leads to boom-and-bust cycles, with the central bank exacerbating the problems it seeks to solve.

Ultimately, the documentary’s message is a call to end the age of bailouts and stop the Fed’s policy of unwarranted intervention, noting how billionaires benefited significantly from the Fed’s quantitative easing programs, while the ordinary Americans struggle to make ends meet. The documentary, which aired in July 2021, is available via the PBS app, online, or through local PBS affiliates.