Tony Crescenzi is an executive vice president, market strategist and portfolio manager in the Newport Beach office, and member of the Investment Committee at PIMCO.

He has written an article in which he discusses

  • fractional reserve banking (“how households and businesses are able to borrow until the cows come home … It is different under a gold standard”),
  • how “credit growth began to soar” in the US once it left the gold standard for fiat currency,
  • and how now “central bankers are acting mightily to manage the inherently unstable financial system, taking mammoth actions designed to boost asset prices and encourage lending, all the while hoping to keep households, businesses and investors dreaming and distracted from the monumental issues related to the financial system’s architecture”

Hmmm … PIMCO seems to be targeting a new market, yeah?


Anyway, he goes on to discuss 3 particular challenges facing the Federal Reserve:

1. The recent acceleration in inflation
2. The “dots” in the Fed’s Summary of Economic Projections
3. Financial stability risks

And … “Let’s look more closely at the three issues mentioned above and how Mrs. Sandman has thus far put them to rest

More detail at the article, its ungated: Global Central Bank Focus, August 2014, Mrs. Sandman​

Don’t go crashing their server now, K?