THE BIGGEST MISSING LINK IN MACROECONOMIC HISTORY part 11

According to him "Taken together the two changes make 1914 a major watershed in American monetary history "Methinks gambling on luck could be said in the golden words of marsolism was simply life after death and what survived that economy was nothing more than fortune of luck that greeted its doorstep in the epoch of 1914 when it benefited immensely and profiteered from the war vicissitudes and also the weakening of the international gold standard that gave wider power and global influence to the Federal Reserve more than any other central banks worldwide and the way it exercised the power determined the fate of the gold standard .How come western pundits lend credence to the folly of monetarism that the inflationary financing of the system during the period when there was rapid rise in the stock of money in the Wilsonian and Hooverian era not catalyst to the impediment of great contraction that came later?He accepted the fact and that it persisted 18months after the war but my grouse here was the strategic impetus of golden triangle and allied powers if patronized would have done to prevent or avert the liquidity crisis in the 1930s.Infact it would have prevented the large bank failures in late 30s given the fact credit money acts as insulator to the liquidity crisis redistribute wealth capital as envisaged in the forecast trends of credit cycle unlike the growth in the normal money supply prone to inflation . The evidence of Britain's departure from gold standard in 1931 and the successive reaction by the Federal Reserve indicates that the Fed was clueless about monetary matters Freidman's conclusion also admitted that this clueless reaction intensified the banking collapse of the unprecedented proportion.The crisis when it terminated in the banking Holliday had led to the fact the stock of money was fallen by one third as well as one third of bank crashes ochestrated.I think such inevitable crashes of the hapless banks under a bad regulatory environment could have been prevented by golden triangle.The stock of money that was fallen by a third could have been restored by two third rise in the stock of credit money and quickly restore banking confidence too as well as averting banking panic without waiting for emergence of federal deposit insurance scheme and treasury intervention.The truth is that the Reserve system acted too late and when it did the impact was counterproductive.This to a larger extent undermined the relevance not just the potency of the system and why on earth did they establish a malfunctioning entity? Little wonder it was made to adopt a passive role as the treasury maintain its major role and domineering influence of the fiscal responsibility.It was very clear the failure of monetarism inordinately led to the adoption of fiscal monetarism in the 30s . Unfortunately the monetarist could not identify what was adopted was partial or fiscal monetarism not keynesianism as was fondly and widely accepted critiqued himself unnecessarily without a proper organization of wit to unravel his own Macroeconomic identity unknowingly adopted by his nation.I do not blame him either for distrusting central bankers until the emergence of Alan Greenspan.Ben Bernanke did not shirk the critical responsibility that Fed. was responsible for a host of American economic crisis including the loan and saving crisis of later period.