Why they did it

The policies of the world’s central banks were almost unfathomable between 2008 and 2022. They flooded the system with money and easy credit to such an egregious degree that a layman had to wonder if there was some subterranean systemic problem that they were reacting to that we’all just didn’t know about.

But I’ve come to the conclusion that their motivation can be explained this way: The global financial freeze-up and market melt-down of 2008 just scared them to death. The system looked as if it might collapse and send the world economy into an Even Greater Depression than that of the 1930s. The latter was intolerable to the power elites because the people started to question the whole capitalist system.

So during 2008 the central banks started to open up the monetary and credit spigots to a historically unprecedented extent. And they kept the flood going for over a decade. During that time they were attempting to augment bank balance sheets and corporate cash reserves and and personal nest eggs
such that there would be an enormous cushion in the event of a period of economic contraction. They wanted to instigate a modicum of inflation such that the onset of the next round of debt deflation would not threaten to crash the system.

And now that we’re entering a period of economic contraction and debt deflation their efforts will be tested.