Not sure why Hugh Hendry likes to present sweat-drenched in muscle shirts, but other than that, this discussion is illuminating.
Professor Richard Werner joins Hugh Hendry, founder and former CIO of Eclectica Asset Management, for a deep dive into the world of central banking. They explore the process of credit creation and examine the fundamental role it plays in inflating asset bubbles, the popping of which can wreck whole economies but can be very good for central bankers. They analyze the Bank of Japan’s (BOJ) remarkable record of credit expansion, including its use of lending quotas, through the lens of Werner’’ renowned book, “Princes of the Yen,” which was a number one bestseller in Japan. They also look at the ongoing efforts of the Fed and the European Central Bank (ECB) to provide liquidity during this unprecedented global crisis at all costs, particularly debt monetization and quantitative easing (a term Werner himself coined), which Werner suggests could lead to a widespread bank nationalization – or a “Sovietization” of the banking sector, as he says. Werner argues that the ECB is undemocratic and that it bears a closer similarity to the Reichsbank (1876 – 1945) than it does to the Bundesbank (1957-present). Filmed on May 15, 2020. Here is a direct video link.
Werner’s 2003 book does not seem to be in print at present. The 2014 Princes of the Yen documentary based on the book is available on YouTube, here is the link:
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