At A Conference In Dubai, David Kotok Gave This Presentation On The Precarious State Of Global Monetary Policy

Central banks around the world have pursued unusually aggressive monetary policies in their efforts to stimulate their local economies.

The word "unprecedented" gets thrown around a lot.  But despite the cliche, it's true.

"We do not know how long this game of monetary quantitative easing will continue in the world," says David Kotok of Cumberland Advisors, "We do not know when it will stabilize.We do not know what will happen after that period, and we do not know how extraction will occur.

"What we do know is that world monetary affairs have never been in a situation like this before."

At the Global Interdependence Center conference in Dubai on Tuesday, Kotok gave a presentation outlining what we've witnessed in the recent history of global central banking.

Thanks to David Kotok and Cumberland Advisors for giving us permission to feature his presentation. Follow him on Twitter at @CumberADV.

'Notice that the size of the Fed’s balance sheet has grown from slightly over $900 billion before Lehman-AIG to approximately $3.2 trillion. The Fed continues to increase assets pursuant to its current policy.'

'The key to that slide is the green section labeled “Currency in Circulation,” which totals approximately $1 trillion. The red component is the excess reserves deposited at the Fed through the US banking system.'

This shows 'the projected peaking of the Fed’s balance sheet at about $3.5 trillion and the gradual decline through 2020.'

From a 2013 special paper entitled “Crunch Time: Fiscal Crises in the Role of Monetary Policy,” by Greenlaw, Hamilton, Hooper, and Mishkin.

Please follow Money Game on Twitter and Facebook.