All-Star Jeff Snider and Erik discuss:
- Bank reserves fall under an outdated definition of "base money", therefore it isn't clear what an increase in bank reserves actually signifies.
- Beginning with inflation expectations, if the Fed was printing money then its missing from the bond market; TIPS suggest crisis level lows for short run and long run inflation conditions (deflation, in other words)
- Despite that $1.5 trillion, LIBOR remains crucially elevated; TED spread behaving just like 2008
- You're not supposed to question what central banks actually do, because if you think through the actual process you'll see there's far less than you're made to believe (belief is what matters in modern monetary policy)
Supporting Materials for Download
Not Money Printing - GFC2: The Bowl's Empty
Mr. Snider is Chief Investment Strategist and Head of Global Research at Alhambra Investment Partners. Through detailed and comprehensive investigation of the global monetary and banking system, he was one of the few analysts to sound the alarm during the run-up to the panic of 2008 and then to predict the rebound in 2009. His current commentary focuses on the global implications of the ongoing monetary deconstruction including the failure of Federal Reserve and central bank policy. Mr. Snider is published nationally at RealClearMarkets, NewsMax, David Stockman's Contra Corner, and other places.