Home › Forums › Financial Markets/Economics › Paying Attention?
- This topic has 315 replies, 16 voices, and was last updated 13 years, 3 months ago by
CA renter.
-
AuthorPosts
-
August 8, 2011 at 7:27 PM #717527August 9, 2011 at 12:07 AM #716500
CA renter
Participant[quote=briansd1][quote=CA renter]
According to Brian, it didn’t cost us anything!It’s all good… ;)[/quote]
Monetary policy didn’t cost anything in nominal terms. And if you still believe that we had and are having deflation, then it’s been beneficial in real terms.
CA renter, the Federal Reserve made money in 2009 and 2010 because prices of the assets they purchased increased.
As Ken Roggoff of Harvard said, QE1 and QE1 were half-baked and timid. The Federal Reserve should have been more decisive.
http://www.pbs.org/newshour/bb/business/july-dec11/economy2_08-08.html%5B/quote%5D
Didn’t cost anything? Where do you think that spike in public debt came from?
[This chart shows debt from 2001-present, but that’s enough to get an idea of what I’m talking about.]
http://ycharts.com/indicators/total_us_public_debt#&zoom=0
They are adding MORE debt to mask the deflation. Mind you, it’s too much debt, and too-high prices as a result of that debt, that are the cause of our problems. Deflation is the solution to our problems, it is not the enemy; but the idiots on Wall Street and in D.C. refuse to acknowledge this.
They keep thinking we’re having “liquidity problems” when **too much** money, concentrated in the hands of too few, is sloshing around the globe, driving up prices for basic goods that people need — people whose wages have NOT gone up in the past few years…or decade…or decades, depending on how one looks at it.
August 9, 2011 at 12:07 AM #716588Participant[quote=briansd1][quote=CA renter]
According to Brian, it didn’t cost us anything!It’s all good… ;)[/quote]
Monetary policy didn’t cost anything in nominal terms. And if you still believe that we had and are having deflation, then it’s been beneficial in real terms.
CA renter, the Federal Reserve made money in 2009 and 2010 because prices of the assets they purchased increased.
As Ken Roggoff of Harvard said, QE1 and QE1 were half-baked and timid. The Federal Reserve should have been more decisive.
http://www.pbs.org/newshour/bb/business/july-dec11/economy2_08-08.html%5B/quote%5D
Didn’t cost anything? Where do you think that spike in public debt came from?
[This chart shows debt from 2001-present, but that’s enough to get an idea of what I’m talking about.]
http://ycharts.com/indicators/total_us_public_debt#&zoom=0
They are adding MORE debt to mask the deflation. Mind you, it’s too much debt, and too-high prices as a result of that debt, that are the cause of our problems. Deflation is the solution to our problems, it is not the enemy; but the idiots on Wall Street and in D.C. refuse to acknowledge this.
They keep thinking we’re having “liquidity problems” when **too much** money, concentrated in the hands of too few, is sloshing around the globe, driving up prices for basic goods that people need — people whose wages have NOT gone up in the past few years…or decade…or decades, depending on how one looks at it.
August 9, 2011 at 12:07 AM #717189Participant[quote=briansd1][quote=CA renter]
According to Brian, it didn’t cost us anything!It’s all good… ;)[/quote]
Monetary policy didn’t cost anything in nominal terms. And if you still believe that we had and are having deflation, then it’s been beneficial in real terms.
CA renter, the Federal Reserve made money in 2009 and 2010 because prices of the assets they purchased increased.
As Ken Roggoff of Harvard said, QE1 and QE1 were half-baked and timid. The Federal Reserve should have been more decisive.
http://www.pbs.org/newshour/bb/business/july-dec11/economy2_08-08.html%5B/quote%5D
Didn’t cost anything? Where do you think that spike in public debt came from?
[This chart shows debt from 2001-present, but that’s enough to get an idea of what I’m talking about.]
http://ycharts.com/indicators/total_us_public_debt#&zoom=0
They are adding MORE debt to mask the deflation. Mind you, it’s too much debt, and too-high prices as a result of that debt, that are the cause of our problems. Deflation is the solution to our problems, it is not the enemy; but the idiots on Wall Street and in D.C. refuse to acknowledge this.
They keep thinking we’re having “liquidity problems” when **too much** money, concentrated in the hands of too few, is sloshing around the globe, driving up prices for basic goods that people need — people whose wages have NOT gone up in the past few years…or decade…or decades, depending on how one looks at it.
August 9, 2011 at 12:07 AM #717338Participant[quote=briansd1][quote=CA renter]
According to Brian, it didn’t cost us anything!It’s all good… ;)[/quote]
Monetary policy didn’t cost anything in nominal terms. And if you still believe that we had and are having deflation, then it’s been beneficial in real terms.
CA renter, the Federal Reserve made money in 2009 and 2010 because prices of the assets they purchased increased.
As Ken Roggoff of Harvard said, QE1 and QE1 were half-baked and timid. The Federal Reserve should have been more decisive.
http://www.pbs.org/newshour/bb/business/july-dec11/economy2_08-08.html%5B/quote%5D
Didn’t cost anything? Where do you think that spike in public debt came from?
[This chart shows debt from 2001-present, but that’s enough to get an idea of what I’m talking about.]
http://ycharts.com/indicators/total_us_public_debt#&zoom=0
They are adding MORE debt to mask the deflation. Mind you, it’s too much debt, and too-high prices as a result of that debt, that are the cause of our problems. Deflation is the solution to our problems, it is not the enemy; but the idiots on Wall Street and in D.C. refuse to acknowledge this.
They keep thinking we’re having “liquidity problems” when **too much** money, concentrated in the hands of too few, is sloshing around the globe, driving up prices for basic goods that people need — people whose wages have NOT gone up in the past few years…or decade…or decades, depending on how one looks at it.
August 9, 2011 at 12:07 AM #717696Participant[quote=briansd1][quote=CA renter]
According to Brian, it didn’t cost us anything!It’s all good… ;)[/quote]
Monetary policy didn’t cost anything in nominal terms. And if you still believe that we had and are having deflation, then it’s been beneficial in real terms.
CA renter, the Federal Reserve made money in 2009 and 2010 because prices of the assets they purchased increased.
As Ken Roggoff of Harvard said, QE1 and QE1 were half-baked and timid. The Federal Reserve should have been more decisive.
http://www.pbs.org/newshour/bb/business/july-dec11/economy2_08-08.html%5B/quote%5D
Didn’t cost anything? Where do you think that spike in public debt came from?
[This chart shows debt from 2001-present, but that’s enough to get an idea of what I’m talking about.]
http://ycharts.com/indicators/total_us_public_debt#&zoom=0
They are adding MORE debt to mask the deflation. Mind you, it’s too much debt, and too-high prices as a result of that debt, that are the cause of our problems. Deflation is the solution to our problems, it is not the enemy; but the idiots on Wall Street and in D.C. refuse to acknowledge this.
They keep thinking we’re having “liquidity problems” when **too much** money, concentrated in the hands of too few, is sloshing around the globe, driving up prices for basic goods that people need — people whose wages have NOT gone up in the past few years…or decade…or decades, depending on how one looks at it.
August 9, 2011 at 5:26 AM #716557pemeliza
Participant“Didn’t cost anything? Where do you think that spike in public debt came from?”
The huge drop in tax receipts because of the weak economy. The government is not willing to cut spending to compensate for revenue drops.
August 9, 2011 at 5:26 AM #716646Participant“Didn’t cost anything? Where do you think that spike in public debt came from?”
The huge drop in tax receipts because of the weak economy. The government is not willing to cut spending to compensate for revenue drops.
August 9, 2011 at 5:26 AM #717247Participant“Didn’t cost anything? Where do you think that spike in public debt came from?”
The huge drop in tax receipts because of the weak economy. The government is not willing to cut spending to compensate for revenue drops.
August 9, 2011 at 5:26 AM #717396Participant“Didn’t cost anything? Where do you think that spike in public debt came from?”
The huge drop in tax receipts because of the weak economy. The government is not willing to cut spending to compensate for revenue drops.
August 9, 2011 at 5:26 AM #717752Participant“Didn’t cost anything? Where do you think that spike in public debt came from?”
The huge drop in tax receipts because of the weak economy. The government is not willing to cut spending to compensate for revenue drops.
August 9, 2011 at 9:43 AM #716635briansd1
Guest[quote=pemeliza] The huge drop in tax receipts because of the weak economy. The government is not willing to cut spending to compensate for revenue drops.[/quote]
Exactly. That’s where the debt increases came from.
State and local governments must have balance budgets so they have been cutting. State and local cuts roughly amounted to the Federal stimulus.
That’s fiscal policy.
*
Monetary policy is Federal Reserve action.
CA renter, you really need to separate fiscal and monetary policy to understand how it all works.
The Federal Reserve (Fed) buys financial assets to inject liquity into the economy. Eventually, they sell the assets at a profit or loss. The Fed has made big profits.
It’s important to not confuse the Fed with the Federal governnment (the Feds which refers more to Federal law enforcement).
August 9, 2011 at 9:43 AM #716726Guest[quote=pemeliza] The huge drop in tax receipts because of the weak economy. The government is not willing to cut spending to compensate for revenue drops.[/quote]
Exactly. That’s where the debt increases came from.
State and local governments must have balance budgets so they have been cutting. State and local cuts roughly amounted to the Federal stimulus.
That’s fiscal policy.
*
Monetary policy is Federal Reserve action.
CA renter, you really need to separate fiscal and monetary policy to understand how it all works.
The Federal Reserve (Fed) buys financial assets to inject liquity into the economy. Eventually, they sell the assets at a profit or loss. The Fed has made big profits.
It’s important to not confuse the Fed with the Federal governnment (the Feds which refers more to Federal law enforcement).
August 9, 2011 at 9:43 AM #717327Guest[quote=pemeliza] The huge drop in tax receipts because of the weak economy. The government is not willing to cut spending to compensate for revenue drops.[/quote]
Exactly. That’s where the debt increases came from.
State and local governments must have balance budgets so they have been cutting. State and local cuts roughly amounted to the Federal stimulus.
That’s fiscal policy.
*
Monetary policy is Federal Reserve action.
CA renter, you really need to separate fiscal and monetary policy to understand how it all works.
The Federal Reserve (Fed) buys financial assets to inject liquity into the economy. Eventually, they sell the assets at a profit or loss. The Fed has made big profits.
It’s important to not confuse the Fed with the Federal governnment (the Feds which refers more to Federal law enforcement).
August 9, 2011 at 9:43 AM #717476Guest[quote=pemeliza] The huge drop in tax receipts because of the weak economy. The government is not willing to cut spending to compensate for revenue drops.[/quote]
Exactly. That’s where the debt increases came from.
State and local governments must have balance budgets so they have been cutting. State and local cuts roughly amounted to the Federal stimulus.
That’s fiscal policy.
*
Monetary policy is Federal Reserve action.
CA renter, you really need to separate fiscal and monetary policy to understand how it all works.
The Federal Reserve (Fed) buys financial assets to inject liquity into the economy. Eventually, they sell the assets at a profit or loss. The Fed has made big profits.
It’s important to not confuse the Fed with the Federal governnment (the Feds which refers more to Federal law enforcement).
-
AuthorPosts
- You must be logged in to reply to this topic.