Monday, July 6, 2020

Should Joe Rogan Run the Fed?

Hugh Hendry
Hugh Hendry, the founding partner of Eclectica Asset Management, told Bloomberg's Jonathan Ferro that the Federal Reserve Board has not printed money since the start of the COVID-19 crash.

He says the Fed is too conservative and that podcaster Joe Rogan should be running the Fed.

Hendry sais many other mad things (no offense to Rogan during his interview but I want to focus on
his money supply claims. They are just not true.

Here is a look at what has happened to currency in circulation since the start of the COVID-19 panic:

Here is a look at M1, which is mostly currency in circulation and checking account money:

Here is 13-week annualized money supply growth, the way I calculate it as outlined in my book, The Fed Flunks: My Speech at the New York Federal Reserve Bank. It is now growing at an annualized rate of 62.7%!

The other lines show growth over the last 8 years. As is obvious, money supply growth is currently totally out of control.

As for Rogan heading the Fed, I have no idea what he would do but he can't do worse than what the current Fed members are doing.

Hendry, on the other hand, I would keep as far away as possible from the Fed. Maybe send him to Zimbabwe to advise the Reserve Bank of Zimbabwe on money pumping.



  1. I think Rogan's experience in combat sports might intuitively guard him against some of the high-minded absurdities economists spit out to magically conjure wealth at zero cost. It sounds too much like a clever trick for a guy who has seen a thousand dudes with a thousand clever tricks get knocked out by reality.

  2. In a couple other of Hugh Hendry's discussions he doesn't think money has been printed because debt levels haven't taken off. He thinks the Fed should behave like the Japanese banks post WW2, like the book Princes of the Yen describes. Funny how finance guys can focus on a certain aspect of the monetary system and miss something as obvious as you have pointed out here.