JOHN BUTLER: FED WILL TAKE QE NUCLEAR, MONETIZE ENTIRE SHADOW BANKING SYSTEM
NOVEMBER 26, 2012
GoldMoney’s Alasdair Macleod talks to John Butler — Chief Investment Officer at Amphora Commodities Alpha and publisher of the Amphora Report, as well as author of The Golden Revolution: How to Prepare for the Coming Global Gold Standard. They discuss the huge debt problems confronting Western economies, central banks’ reflation efforts and the significance of the shadow banking system.
Butler emphasises that policymakers will do everything in their power to fight natural deflationary pressures with policy-induced inflation. He argues that when central banks really want to double-down on their efforts to push prices higher, they may consider monetising the entire shadow banking system by taking it onto their own balance sheets in return for newly created cash — a possibility that Butler calls the “nuclear option”.