As sad as it makes me to say, it is very true that the Federal Reserve has already done many things to set in motion the next huge financial crises. They are setting us up for massive inflation with all the money they are constantly adding to our financial system.
The US Fed has a near zero interest rate policy (ZIRP). Long term low interest rates distort the economy and cause a significant misallocation of capital. ZIRP keeps banks and industries alive that should have been allowed to die a natural death years ago. These Zombie banks and industries are eating up capital that should have gone into the real economy to produce real jobs. Additionally, ZIRP also suppresses the value of saving accounts and pensions, forcing older workers to stay in the workforce longer or accept greatly reduced standards of living. All told, ZIRP tends to reward the incautious and punish the prudent. http://tinyurl.com/9wng9vf
The Federal Reserve is wasting our money.. They are spending it on nonsense things and do not seem to care that we are in debt. If we keep up the way we are, we are heading into another depression. We will go back to vouchers and a cap on what we can buy.
Historically speaking, any government with such a loose government spending policy only exacerbates the financial crisis at hand. Already the United States is in debt in the trillions, and with such a policy, the United States would go further into debt. We need to further regulate the Federal Reserve budget in order to prevent the next financial crisis.
Our last financial crisis was the result of regulatory failures as opposed to a failure of monetary policy. The Fed as the only institutional guardian of financial stability, or at least the primary guardian, stepped up with quantitative measures and the commitment to keep interest rates low for long period of time to allow the economy to recover and to provide the needed infusion of money into the system.