The monetary system is missing of money. Expectation of its return is no longer enough; actual recreation of modern money is needed. That job belongs to the private sector, the banks. It was true of the 1930s, and true of present day.

Quantitative easing, like foie gras, is controversial. The gavage-based production of duck and goose livers is considered cruel to the animal, gorged helplessly as it is in a pen. Central banks likewise perform a force-feeding, a monetary gavage of reserves forced onto the private bank balance sheet. What makes it a peculiar practice is that the monetary farmer expects this gorged banking goose to then dance around carefree - honking out credit at every passing leaf or tussled blade of grass.

Since 2001 this 'monetary husbandry' has failed. In Japan, the United States, Britain and Europe. (Worse still, the result isn't a rich, buttery and delicate specialty that could be enjoyed with some mustard seeds and green beans in duck jus.) In this episode we review three articles that delve even farther back in history, to the Great Depression, to show that similar sounding solutions didn't work then either.

The fear of unchecked inflation - "Weimar", for short - now that both fiscal authorities and central banks are encouraging the leaden economy to flap its wings is, therefore, misplaced. At least, not until wholesale reform of process and procedures within the modern central bank. Not until credibility and competence is prioritized over its credentials.

*WHERE*
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*WHAT*
Weimar Ben Didn’t Happen, So Now Weimar Jay?: [ Ссылка ]
Weimar Thirties Didn’t Happen Because It’s What You Don’t See: [ Ссылка ]
Everyone Knows The Gov’t Wants A ‘Controlled’ Weimar: [ Ссылка ]
Chicago Fed's Monetary Policy in a Lower Interest Rate Environment: [ Ссылка ]

*WHO*
Jeff Snider, Head of Global Research at Alhambra Investments with Emil Kalinowski, one of several people - along with Archibald Leach, Bernard Schwartz and Lucille LeSueur - who've never been in your kitchen. Artwork by the Botticelli of our day, David Parkins.

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