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    Summary of Christopher Leonard's The Lords of Easy Money
    Summary of Christopher Leonard's The Lords of Easy Money
    Summary of Christopher Leonard's The Lords of Easy Money
    Ebook48 pages57 minutes

    Summary of Christopher Leonard's The Lords of Easy Money

    By IRB Media

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    Please note: This is a companion version & not the original book.

    Book Preview: #1 The Federal Reserve System is the only institution in the world that can create American dollars at will. Because he was a senior official at the Federal Reserve, Thomas Hoenig had to think about money all the time. He had to think about it as a system to be managed and managed just right, or else terrible things might happen.

    #2 For a year, Hoenig had been voting no. If you tallied his votes during 2010, the tally would read: no, no, no, no, no, and no. His dissents had become expected, but they were also startling if you considered Tom Hoenig’s character. He was a rule-follower.

    #3 The American financial system had collapsed in late 2008, after the investment bank Lehman Brothers collapsed. The world of central banking was neatly divided into two eras: pre-GFC and post-GFC. The GFC itself was apocalyptic.

    #4 The Fed is like a group of engineers in the control room of a nuclear power plant. They heat up the reactor, by cutting rates, when more power is needed. And they cool down the reactor, by raising rates, when conditions are getting too hot.

    LanguageEnglish
    PublisherIRB Media
    Release dateMar 9, 2022
    ISBN9781669357360
    Summary of Christopher Leonard's The Lords of Easy Money
    Author

    IRB Media

    With IRB books, you can get the key takeaways and analysis of a book in 15 minutes. We read every chapter, identify the key takeaways and analyze them for your convenience.

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      Book preview

      Summary of Christopher Leonard's The Lords of Easy Money - IRB Media

      Insights on Christopher Leonard's The Lords of Easy Money

      Contents

      Insights from Chapter 1

      Insights from Chapter 2

      Insights from Chapter 3

      Insights from Chapter 1

      #1

      The Federal Reserve System is the only institution in the world that can create American dollars at will. Because he was a senior official at the Federal Reserve, Thomas Hoenig had to think about money all the time. He had to think about it as a system to be managed and managed just right, or else terrible things might happen.

      #2

      For a year, Hoenig had been voting no. If you tallied his votes during 2010, the tally would read: no, no, no, no, no, and no. His dissents had become expected, but they were also startling if you considered Tom Hoenig’s character. He was a rule-follower.

      #3

      The American financial system had collapsed in late 2008, after the investment bank Lehman Brothers collapsed. The world of central banking was neatly divided into two eras: pre-GFC and post-GFC. The GFC itself was apocalyptic.

      #4

      The Fed is like a group of engineers in the control room of a nuclear power plant. They heat up the reactor, by cutting rates, when more power is needed. And they cool down the reactor, by raising rates, when conditions are getting too hot.

      #5

      The Fed was going to vote on a radical experiment in 2010 called quantitative easing, which would essentially take interest rates negative for the first time and push even more money into the banking system.

      #6

      Hoenig was very critical of quantitative easing, as he knew that it would create historically huge amounts of money that would be delivered first to the big banks on Wall Street. He believed that this money would widen the gap between the very rich and everyone else.

      #7

      The Fed sent vehicles to transport the regional bank presidents as a group to its headquarters building. The presidents all spoke the same language and shared the same burden. Hoenig had worked around people like this his entire career, but his position within the FOMC had grown increasingly strained with each no vote he cast.

      #8

      The Fed was beginning to feel the pressure from Hoenig’s dissents, as the decisions it was making were becoming more and more significant. The public had lost faith in America’s democratic institutions, and were turning to the nondemocratic institutions of the Fed and the Supreme Court to solve their problems.

      #9

      The dissents of Thomas Hoenig, the longest-serving member of the Fed’s Board of Governors, were a

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