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A Review of Central Bankers at the End of Their Rope By Dr. Jack Rasmus

January 20, 2018 • FINANCE & BANKING, SPECIAL FEATURES, Book Review, Commentary, Governance & Regulation

By Lawrence Souza

 

Introduction

If you talk to some monetary, fiscal, macroeconomic, and financial institutional and capital market economists, some would argue that Central Banks are at the end of their rope; have lost their credibility and risk losing their independence.

Dr. Jack Rasmus book, Central Bankers at the End of Their Rope? Monetary Policy and the Coming Depression is the latest in a growing literature building the case against the U.S. Federal Reserve (the Central Bank of Central Banks), European Central Bank, Japanese Central Bank, The Bank of England, People’s Bank of China, etc.; their unorthodox monetary policy response to the financial crisis; policy response to asset price bubbles, financial (market) crisis (crashes), and recessions since 1995; lack of macro-prudential supervision and oversight; and consistent policy mistakes based on their lack of understanding of how the world and economy really works, dates back as far as 1929 (See supporting Literature in the Appendix).

In Dr. Rasmus book, he looks at:

1. Problems and Contradictions of Central Banking

2. A Brief History of Central Banking

3. The U.S. Federal Reserve Bank: Origins and Toxic Legacies

4. Greenspan’s Bank: The Typhon Monster Released

5. Bernanke’s Bank: Greenspan’s Put (Option) on Steroids

6. The Bank of Japan: Harbinger of Things That Came

7. The European Central Bank under German Hegemony

8. The Bank of England’s Last Hurrah: From QE to BREXIT

9. The People’s Bank of China Chases Its Shadows

10. Yellen’s Bank: From Taper Tantrums to Trump Trade

11. Why Central Banks Fail

12. Revolutionising Central Banking in the Public Interest: Embedding Change Via Constitutional Amendment

Dr. Rasmus builds a methodical case against historical and current central bank ideologies and orthodoxy; and makes prudent and wise recommendations for structural and institutional macroeconomic, monetary policy and political change.

The conclusion, its not too late to address the systemic and systematic risks to central banking, regulation and supervision, financial institutions and capital markets, and the real economy and labor markets.

However, considering the real economic realities of the current political, party and policy environment, along with Wall Street’s control over monetary (Federal Reserve), fiscal (Treasury) and regulatory (Comptroller/SEC/FDIC/etc.) policy in Washington, that a political solution could actually be accomplished. Dr. Rasmus is correct in his recommendations and his analysis.

We are all at the end of our rope, and thank you Dr. Jack Rasmus for bringing another critical analysis of the current and future state of global central banking, and for proposing bold policy recommendations to avert another severe financial crisis, great recession and depression.

 
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About the Author

Dr. Lawrence A. Souza, DBA/CCIM/RICS/CRE is an Adjunct Professor in Finance at St. Mary’s College, School of Economics and Business Administration (SEBA). He has over 28 years of experience in the commercial real estate investment advisory industry, providing economic and investment consulting services to individual and institutional real estate investors. Prior to St. Mary’s College of California, Pillar6 Advisors, LLC, Johnson Souza Group, Inc., and New York Life Insurance Company/NYLIFE Securities LLC, Dr. Souza worked for Charles Schwab Investment Management (CSIM) as Managing Director – Index Services; Chief Economist – Managing Director with Global Real Analytics (GRA); and Investment Advisor for Quantum Financial Network (QFN).

 

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