{"id":45939,"date":"2019-05-05T06:11:45","date_gmt":"2019-05-05T11:11:45","guid":{"rendered":"https:\/\/olduvai.ca\/?p=45939"},"modified":"2019-05-05T06:11:52","modified_gmt":"2019-05-05T11:11:52","slug":"central-banks-dont-matter","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=45939","title":{"rendered":"Central Banks Don\u2019t Matter"},"content":{"rendered":"\n
\"Central<\/figure>\n\n\n\n

<\/em><\/em><\/p>\n\n\n\n

Central Banks Don\u2019t Matter<\/a><\/h3>\n\n\n\n

\u201cThere is no money in monetary policy.\u201d<\/p>\n\n\n\n

Could it be true? Is there no money in monetary policy?<\/p>\n\n\n\n

Yesterday we argued the Federal Reserve cannot even define money\u2026 much less measure it to any reasonable satisfaction.<\/p>\n\n\n\n

Today we venture upon a heresy deeper still \u2014 that central bank \u201cmonetary\u201d policy has no actual existence.<\/p>\n\n\n\n

No money stands beneath it, behind it, beside it.<\/p>\n\n\n\n

The emperor is well and truly nude.<\/p>\n\n\n\n

Who then actually controls monetary policy today?<\/p>\n\n\n\n

The answer may very well lie hidden in the \u201cshadows.\u201d<\/p>\n\n\n\n

The details \u2014 the shocking details \u2014 to follow.<\/p>\n\n\n\n

Monetary Policy Is Actually About Credit and Debt<\/strong><\/p>\n\n\n\n

First moneyman par excellence<\/em> Jeff Snider \u2014 author of today\u2019s opening quotation \u2014 rams a sharp stake through the heart of the monetary myth:<\/p>\n\n\n\n

Monetary policy has been quite intentionally stripped of money. Banks evolved and there was really no easy way to define money beyond a certain point (in the \u201960s), so economists just gave up trying\u2026 <\/em><\/p>

Money as it relates to \u201cmonetary\u201d policy is not really money at all. What monetary policy refers to in contemporary terms is something wholly different\u2026 When the Federal Reserve\u2026 act[s] on monetary measures, they seek not to increase the supply of money to the economy but rather the supply of credit\u2026 Monetary policy in the modern sense of the word actually has little to do with money. Instead, it is always and everywhere about credit and debt\u2026<\/em><\/p><\/blockquote>\n\n\n\n

All money is debt-based money in today\u2019s lunatic and preposterous world.<\/p>\n\n\n\n

The dollar in your wallet you consider an asset. But only someone else\u2019s previous debt fanned it into existence.<\/p>\n\n\n\n

Technically it is a Federal Reserve note. A note is a debt instrument.<\/p>\n\n\n\n

None of the foregoing will stagger or flabbergast\u00a0Daily Reckoning<\/em>\u00a0readers.<\/p>\n\n\n\n

 \u2026click on the above link to read the rest of the article\u2026<\/p>\n","protected":false},"excerpt":{"rendered":"

Central Banks Don\u2019t Matter \u201cThere is no money in monetary policy.\u201d Could it be true? Is there no money in monetary policy? Yesterday we argued the Federal Reserve cannot even define money\u2026 much less measure it to any reasonable satisfaction. Today we venture upon a heresy deeper still \u2014 that central bank \u201cmonetary\u201d policy has […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[15378,11023,195,25800,3650],"class_list":["post-45939","post","type-post","status-publish","format-standard","hentry","category-economics","tag-brian-maher","tag-daily-reckoning","tag-debt","tag-jeff-snider","tag-us-federal-reserve"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/45939","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=45939"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/45939\/revisions"}],"predecessor-version":[{"id":45940,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/45939\/revisions\/45940"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=45939"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=45939"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=45939"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}