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

'My definition of inflation is as follows "Inflation is an increase in money supply and credit, with credit marked to market".

This is how the real world works in a fiat credit-based system.

My definition is not easily measurable, but neither is the CPI.'

- Mish, (Global - 2018) - '..manifestations of Monetary Disorder..'



'Volcker accurately stats that the danger comes from encouraging inflation and its close cousin of extreme speculation creating bubbles and excesses threaten financial markets. Ironically, the “easy money,” striving for a “little inflation” as a means of forestalling deflation, could, in the end, be what brings it about.'

'Volcker goes on to blast the risks of deflation, noting "fear [of deflation] can in fact, easily lead to policies that inadvertently increase the risk.

Volcker accurately stats that the danger comes from encouraging inflation and its close cousin of extreme speculation creating bubbles and excesses threaten financial markets. Ironically, the “easy money,” striving for a “little inflation” as a means of forestalling deflation, could, in the end, be what brings it about.

Volcker's article is an excerpt from his upcoming book “Keeping At It: The Quest for Sound Money and Good Government,” by Paul Volcker with Christine Harper.)

End the Fed

The only thing Volcker missed is a failure to tackle the notion that there needs to be a central bank at all.

Otherwise, his rant is 100% spot on.'

..

Bubbles Everywhere

As a direct result of the Fed's total incompetence in understanding inflation, bubbles are readily apparent in equities, in junk bonds, and in Bitcoin speculation.

Those bubbles will burst bringing about the very deflation the Fed hoped to prevent.

..

Bloomberg, the Financial Times, the Wall Street Journal, and the New York Times all turned down articles by me with nearly identical statements as Volcker made.'

- Mike "Mish" Shedlock, Volcker Blasts Bernanke and Yellen Over 2% Inflation Target, October 30, 2018



Context

'Deflation may actually boost output. Lower prices increase real incomes and wealth. And they may also make export goods more competitive.' - BIS

The Dangerous Delusion of Price Stability - William White

(Global - 2018) - '..manifestations of Monetary Disorder..'


'..we have too much of the wrong type of debt and thus the velocity of money has been falling since 1997.'

'..Bubble Economy Maladjustment – on an unparalleled global scale..'

'..the Great Depression .. was caused – like our crisis today – by too much debt.'


Central Banks as Relentless Boosters of the Rich - By Daniel Stelter

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

(Banking Reform - English/Dutch) '..a truly stable financial and monetary system for the twenty-first century..'


'..a process of transition toward the only world financial order..' - Jesús Huerta de Soto