Epigraph to Brendan Brown's 'Euro crash: How asset price inflation destroys the wealth of nations'

Article Highlights

  • Fiat currency central banks claim to fight the inflation they cause, and likewise to offset the financial instability and systemic risk they create.

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  • Asset price inflations are the most insidious, for while they last they are highly popular, leading people to think they are growing rich and to run up their debt.

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  • Nobody is better at diagnosing and dissecting central bank games than Brendan Brown, whether it is the Federal Reserve or the European Central Bank.

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Editor's note: The following epigraph appears in the third edition of Brendan Brown's Euro Crash: How Asset Price Inflation Destroys the Wealth of Nations.

Fiat currency central banks claim to fight the inflation they cause, and likewise to offset the financial instability and systemic risk they create. The depreciation of the currencies they issue at will often cause falls in foreign exchange value, goods and services inflation, or asset price inflations. Of these, asset price inflations are the most insidious, for while they last they are highly popular, leading people to think they are growing rich and to run up their debt. When the asset inflations collapse, the central banks can come as the fire department to the fire they stoked. Nobody is better at diagnosing and dissecting these central bank games than Brendan Brown, whether it is the Federal Reserve (The Global Curse of the Federal Reserve) or the European Central Bank – this book, Euro Crash. It will give you a healthy boost in your skepticism about those who pretend to be the Platonic guardians of the financial system.
 
-Alex J. Pollock, Resident Fellow, American Enterprise Institute, Washington, DC; former president and chief executive officer Federal Home Loan Bank of Chicago.

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