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probably not, but I couldn't resist the headline.
Warburton talks about how in the late 70s and early 80s a lot of inflation-fighting work that was credited to Volcker actually was done by the capital markets, NOT by Volcker's actions.
In the last year, Ben Bernanke seems to have invented and deployed tools, methods, techniques and financial instruments and FED loan types that can seemingly inflate the money supply
WITHOUT
causing inflation (in the short erm anyway ... we'll see about the long term.) .
We may eventually come to realize that these developments outlined by PW partially are responsible for setting the stage for today's happenings.
Googling for Bernanke & Warburton reveals no comment on PW from BB, though.
(an article from 2005)
http://www.safehaven.com/article-4242.htm
Starting in the late 1970s and continuing through the 1990s, liberalization of financial markets (as identified by Peter Warburton in his book "Debt and Delusion"10) allowed the massive pools of capital (money) that were created by Central Banks (US, European, Canadian, etc.) to move into financial instruments such as bonds, stocks, currency markets, and derivatives. This inflated the values of these markets, drew further investment, and hid the monetary inflation of the central banks as consumer goods prices increased relatively slowly in comparison. According to Warburton, the world bond market grew from $1 trillion in 197011 to more than $50 Trillion today. World stock market capitalizations now approach $30 Trillion; during the first 6 months of 2005 alone, financial derivatives grew 16% (or at a compounded 35% annual rate) from $9.45 trillion to $11 trillion12 and through financial gearing now exceed $270 trillion in underlying asset value - more than 500% the world's total annual GDP; and the world's currency trading markets now generate $2 trillion in activity or roughly 17% of the US' total annual GDP, per day. These ballooning financial repositories, now totaling more than $100 trillion, absorbed waves of capital created by central banks with their elastic currencies thus temporarily mitigating the inflationary impact on consumer prices and seemingly creating a Shangri-La economy.
Warburton talks about how in the late 70s and early 80s a lot of inflation-fighting work that was credited to Volcker actually was done by the capital markets, NOT by Volcker's actions.
In the last year, Ben Bernanke seems to have invented and deployed tools, methods, techniques and financial instruments and FED loan types that can seemingly inflate the money supply
WITHOUT
causing inflation (in the short erm anyway ... we'll see about the long term.) .
We may eventually come to realize that these developments outlined by PW partially are responsible for setting the stage for today's happenings.
Googling for Bernanke & Warburton reveals no comment on PW from BB, though.
(an article from 2005)
http://www.safehaven.com/article-4242.htm
Starting in the late 1970s and continuing through the 1990s, liberalization of financial markets (as identified by Peter Warburton in his book "Debt and Delusion"10) allowed the massive pools of capital (money) that were created by Central Banks (US, European, Canadian, etc.) to move into financial instruments such as bonds, stocks, currency markets, and derivatives. This inflated the values of these markets, drew further investment, and hid the monetary inflation of the central banks as consumer goods prices increased relatively slowly in comparison. According to Warburton, the world bond market grew from $1 trillion in 197011 to more than $50 Trillion today. World stock market capitalizations now approach $30 Trillion; during the first 6 months of 2005 alone, financial derivatives grew 16% (or at a compounded 35% annual rate) from $9.45 trillion to $11 trillion12 and through financial gearing now exceed $270 trillion in underlying asset value - more than 500% the world's total annual GDP; and the world's currency trading markets now generate $2 trillion in activity or roughly 17% of the US' total annual GDP, per day. These ballooning financial repositories, now totaling more than $100 trillion, absorbed waves of capital created by central banks with their elastic currencies thus temporarily mitigating the inflationary impact on consumer prices and seemingly creating a Shangri-La economy.
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