'..the inanity of monetary policy today..'

'..As R. Christopher Whalen reminds us in this excellent analysis, "the greatest threat to the central bank’s existence is the tendency of Fed governors and economists to pursue abstract economic theories that make no sense in real world terms and often do more harm than good." '

'Mr. Volcker's memoirs hopefully will serve as a much-needed corrective against the inanity of monetary policy today and a warning against the folly of what Nomi Prins calls "financial alchemy," the false belief that central bankers can conjure up prosperity using technical wizardry. Production, productivity increases, profit, and investment are the only way to create a truly prosperous and sustainable economy, and no amount of policy tinkering can change this. Volcker is not an Austrian, but he is someone who understands the threat to America's economic future posed by disconnected central bank policies. Fed officials, current and former, would be well-served to worry less about Donald Trump's tweets and more about their own reputations. As R. Christopher Whalen reminds us in this excellent analysis, "the greatest threat to the central bank’s existence is the tendency of Fed governors and economists to pursue abstract economic theories that make no sense in real world terms and often do more harm than good."

Let's hope Jay Powell reads Mr. Volcker's book.'

- Jeff Deist, Paul Volcker's New Memoir: A Broadside Against his Successors? October 30, 2018



'Volcker specifically chides Bernanke and Yellen for their fixation on a two percent inflation target, one of the main ornaments on the data dependent Fed Christmas Tree. “How did central bankers fall into the trap of assigning such weight to tiny changes in a single statistic, with all of its inherent weakness?” he asks.'

- R. Christopher Whalen, Volcker Rebukes Bernanke and Yellen, October 28, 2018



Context

'..The Quest for Sound Money and Good Government..' - '..the Fed's total incompetence in understanding inflation..'

November 19, 2018 - European Banks Are Taking Lending Risks Like It's 2007, ECB Says

Paul Volcker, at 91, Sees ‘a Hell of a Mess in Every Direction’


What’s Wrong With the 2 Percent Inflation Target - By Paul Volcker