The Death of Money (48 page)

in Japan,
160
–61,
260
–62,
264

post-2000 deflationary bias,
76

SDR issuance to prevent,
213
–14

tax collection and,
9
,
259
–60

unemployment and,
77

De Gasperi, Alcide,
116

degree distribution,
265
–66

de Léry, Jean,
115

deleveraging,
76
–77,
246

DeMint, Jim,
205

Democrats,
175
–76,
179
,
180
,
294

Deng Xiaoping,
93
,
97

depressions

defined,
244

deflation in,
246
–47

Great Depression,
84
,
85
,
125
–26,
155
,
221
–22,
223
–24,
234
,
244
,
245

Long Depression, in Japan,
160

of 1920,
246
–47

regime uncertainty and,
125
–26

2007 to present,
3
,
76
,
87
,
126
,
197
,
243
–52,
260
,
290
–91

derivatives,
80
–81

gold as not constituting,
217
–18

mortgage-related,
290

risk posed by,
11
–12

size of positions in,
11

Deutsche Bank,
32
–33

Deutsche Bundesbank,
232

devaluations,
158
,
200

of dollar, U.S.,
1
,
10
–11,
235

Gold Bloc devaluations,
222

Great Depression and,
223

digital currencies,
254

dollar, U.S.,
161

alternatives to,
254

Beijing Consensus and,
120
–21

confidence in,
253
–56,
291

contract theory of,
165
–67,
169

deflation as threat to,
9
–11

demise of, potential paths of,
292
–95

devaluation of,
1
,
10
–11,
235

financial war as threat to,
6
–7

geopolitical threats to,
12
–13

gold convertibility abandoned, in 1971,
1
,
2
,
5
,
209
,
220
,
235
,
285

inflation as threat to,
7
–9

King Dollar (sound-dollar) policy,
118
,
176
–77,
210
,
211

loss of confidence in, in 1970s,
1
–2,
5

market collapse as threat to,
11
–12

MARKINT as means of detecting attacks on,
40

pegging to, effect of,
155

SDRs as potential reserve currency replacement for,
211
–14,
292
–93

threats to,
5
–13

Volcker’s efforts to save,
2

Washington Consensus and,
118
–20

dollar index

in 1978,
1
,
253
–54

in 1995,
2
,
253
–54

in 2011,
2
–3,
253
–54

in 2013,
253
–54

SDR issuance and weakness in,
210
–11

Dr. Strangelove
(film),
63

Draghi, Mario,
172
,
211
,
236

Dubai,
55
,
58
,
128
,
153

Dubai World collapse,
128
,
153

Duncan, Richard,
168

earmarked accounts, in gold,
276

easy-money policy of Federal Reserve,
3
–4,
157
–59,
260
,
262
,
264

exporting of inflation through exchange rate mechanism and,
75
,
155

unintended consequences of,
78
–83

weak response to, in liquidity trap,
247

wealth effect and,
72
,
73

Economic Advisory Recovery Board,
252
–53

Economist, The,
43
–44,
134

Egypt,
156

Eichengreen, Barry,
207
,
242

Einhard,
113

Eisenhower, Dwight,
174
–75

electronic barter market,
254
–55

El-Erian, Mohamed,
289

enemy hedge fund scenario,
47
–51

equilibrium models,
4
,
62

Estonia.
See
BELLs (Bulgaria, Estonia, Latvia, Lithuania)

euro,
112
,
113
,
117
–18

Chinese investment in,
126
–27

future of,
133
–37

skeptics of, analytic failures of,
129
–32

sovereign debt crisis of 2010 and,
128
–30

U.S. money market fund investment in,
127

Eurobonds,
136
–37

Europe,
112
–18.
See also
European Union (EU)

Charlemagne’s Frankenreich,
112
,
113
–14

post–World War II steps to unification,
116
–18

warfare and conquest in, history of,
115
–16

European Atomic Energy Community (Euratom),
116
–17

European Central Bank (ECB),
117
,
172

European Coal and Steel Community (ECSC),
116
,
117

European Communities (EC),
117

European Economic Community (EEC),
116
–17

European Rate Mechanism (ERM),
153

European Union (EU),
113
,
121
–37

Berlin Consensus and,
121
–27

Chinese investment in,
126
–27

demographics of,
134
–35

expanding membership of,
136

fiscal and banking reforms, since 2011,
135
–36

future of,
132
–37

IMF commitment of,
202

precursor organizations and founding of,
116
–18

sovereign debt crisis of 2010 and,
128
–30

U.S. investment in,
127

Eurozone,
117
,
121
–27,
129
,
130
,
135
,
136

gold-to-GDP ratio of,
157
,
280

exchange rates,
130

external adjustment of unit labor costs,
131

Fail-Safe
(film),
63

Fannie Mae,
248

Federal Open Market Committee (FOMC),
249
–52

Federal Reserve

asset bubble creation by,
75
–78

bank risk taking in low-interest-rate environment created by,
80
–81

central bank, status as,
198
–99

central planning by,
69
,
71
,
87

debt and deficits, monetary policy’s relation to,
176
–77,
180
–89

deflation and,
9
–11,
76
–83

easy-money policy of (See easy-money policy of Federal Reserve)

financial repression engineered by,
183
–84

financial war, views on,
60
–62

FOMC member views on tapering versus money-printing,
249
–52

forward guidance of,
83
,
86
,
185
–88

gold held in vaults of,
230

Great Depression monetary policy of,
223

Greenspan’s battling of deflation and creation of housing bubble,
76

insolvency of,
286
–88

irreversibility of money creation and,
290

money contract and,
167
,
180
–89

PDS inputs, and monetary policy,
180
–83

quantitative easing (QE) programs,
184
–85

real income declines resulting from policies of,
78
–79

savers penalized by policies of,
79

SME lending damaged by policies of,
79
–80

U.S Treasury debt purchases by,
172

wealth effect and,
72
–75

zero-interest-rate policy of,
72
,
73
,
79
–81,
185
,
186
,
260

Federal Reserve Bank of New York,
73
–74,
230

Federal Reserve Notes,
167

Federation of American Scientists,
58

fiat money,
168
–69

financial repression,
183
–84

financial risk,
85
,
268
–70

financial transmission,
193
–94

financial war,
6
–7,
42
–64

accidental,
63

Chinese cybercapabilities,
45
–46,
51
–53

CIC-Blackstone deal,
51
–52

cyberattacks combined with,
59
–60

defensive aspects of,
46

enemy hedge fund scenario,
47
–51

equilibrium models and,
62

Federal Reserve’s view of,
60
–62

MARKINT as means of detecting,
40
–41

offensive aspects of,
46

panic dynamic and,
62

physical targets,
46

purpose of,
61

solutions to,
64

U.S. cybercapabilities,
53
–54

U.S.-Iran,
54
–58

U.S.-Syria,
57

U.S. Treasury’s view of,
60
–62

virtual targets,
46

Wall Street’s cybercapabilities,
54

war games,
58
–59

fine art, as investment,
299

fiscal dominance,
287
–88

Fiscal Stability Treaty (EU),
135
–36

Fisher, Irving,
168
,
246
–47

Fisker,
123

Fitzgerald, F. Scott,
252

flash crash,
63
,
270
,
296
–97

floating-exchange-rate regime,
235

Fonda, Jane,
1

food price inflation,
3

food stamps,
246

Ford, Gerald,
271
–72

forward guidance,
83
,
86
,
185
–88

forwards, gold,
275
,
285
–86

France,
235
,
236

Franco-Prussian War,
115

Frank, Barney,
204
,
205

Frankenreich,
112
,
113
–14

Freakonomics
(Levitt and Dubner),
32
–33

Freddie Mac,
248

Friedman, Milton,
84
,
168
,
263

Friedman, Tom,
256

Froman, Michael,
195
,
196
,
202
–3

futures, gold,
275
,
284
–86

G7,
139
,
140
,
147

G9,
139
–40

G20,
140
,
147
,
202
,
203

Galloni, Alessandra,
131
–32

Gang of Ten,
138
,
139

Geithner, Timothy,
195
,
196
,
203
,
244

General Electric,
255

General Theory of Employment, Interest and Money, The
(Keynes),
246
–47

Genoa Conference, 1922,
221
–22

Gensler, Gary,
195
,
196

geopolitics,
12
–13

Germany,
125
,
127
,
136
–37,
281

gold repatriation by,
231
–32

GIIPS (Greece, Ireland, Italy, Portugal, Spain),
140
,
142
–46

Glass-Steagall, repeal of,
196
,
253
,
296

gold,
215
–42

BIS transactions,
276
–78

central bank acquisition of, since 2010,
225
–30

central bank manipulation of,
271
–81

Charlemagne’s switch from gold to silver standard,
114

Chávez’s repatriation of,
40
,
231

China’s accumulation of,
12
,
61
,
226
–30,
282
–84,
296

classical gold standard, 1870–1914,
176
,
234
–35

constructing new gold standard,
237
–42

contract money system, role in,
169
–71

contracts based on, risks associated with,
217
–18

disorderly price movements, implications of,
295
–96

dollar convertibility abandoned, in 1971,
1
,
2
,
5
,
209
,
220
,
235
,
285

dollar standard,
234
–35

drop from 1980 highs,
2

forwards,
275
,
285
–86

futures,
275
,
284
–86

Germany’s repatriation of,
231
–32