[Rich Toscano]

[quote=XBoxBoy][quote=Rich Toscano]
(Check today’s admission that the FOMC will engage in further QE for the latest exhibit).
[/quote]

I’m assuming you’re referring to the fed’s announcement that they will reinvest principle from treasuries and other securities that have matured and been paid off. How is that quantitative easing? I thought quantitative easing was when the fed printed (created) new money and bought assets with newly created money. If they receive money for maturing securities and then reinvest that money where is the QE? If that’s not what you’re referring to then I’m curious, what policy are you referring to?[/quote]

Yes, you are correct, I was being sloppy in my use of the term.

Definitional quibbles aside, you are right that this does not itself increase their money printing. There was to be an implicit tightening as they let the maturing MBS mature; now they are preventing that tightening. So this is not an actual expansion of their balance sheet, but it is a loosening of policy compared to what they had previously said they would do.

Whatever you call it, I think it still supports the point I was trying to make…

[Rich Toscano]

[quote=XBoxBoy][quote=Rich Toscano]
(Check today’s admission that the FOMC will engage in further QE for the latest exhibit).
[/quote]

I’m assuming you’re referring to the fed’s announcement that they will reinvest principle from treasuries and other securities that have matured and been paid off. How is that quantitative easing? I thought quantitative easing was when the fed printed (created) new money and bought assets with newly created money. If they receive money for maturing securities and then reinvest that money where is the QE? If that’s not what you’re referring to then I’m curious, what policy are you referring to?[/quote]

Yes, you are correct, I was being sloppy in my use of the term.

Definitional quibbles aside, you are right that this does not itself increase their money printing. There was to be an implicit tightening as they let the maturing MBS mature; now they are preventing that tightening. So this is not an actual expansion of their balance sheet, but it is a loosening of policy compared to what they had previously said they would do.

Whatever you call it, I think it still supports the point I was trying to make…

[Rich Toscano]

[quote=XBoxBoy][quote=Rich Toscano]
(Check today’s admission that the FOMC will engage in further QE for the latest exhibit).
[/quote]

I’m assuming you’re referring to the fed’s announcement that they will reinvest principle from treasuries and other securities that have matured and been paid off. How is that quantitative easing? I thought quantitative easing was when the fed printed (created) new money and bought assets with newly created money. If they receive money for maturing securities and then reinvest that money where is the QE? If that’s not what you’re referring to then I’m curious, what policy are you referring to?[/quote]

Yes, you are correct, I was being sloppy in my use of the term.

Definitional quibbles aside, you are right that this does not itself increase their money printing. There was to be an implicit tightening as they let the maturing MBS mature; now they are preventing that tightening. So this is not an actual expansion of their balance sheet, but it is a loosening of policy compared to what they had previously said they would do.

Whatever you call it, I think it still supports the point I was trying to make…

[Rich Toscano]

[quote=XBoxBoy][quote=Rich Toscano]
(Check today’s admission that the FOMC will engage in further QE for the latest exhibit).
[/quote]

I’m assuming you’re referring to the fed’s announcement that they will reinvest principle from treasuries and other securities that have matured and been paid off. How is that quantitative easing? I thought quantitative easing was when the fed printed (created) new money and bought assets with newly created money. If they receive money for maturing securities and then reinvest that money where is the QE? If that’s not what you’re referring to then I’m curious, what policy are you referring to?[/quote]

Yes, you are correct, I was being sloppy in my use of the term.

Definitional quibbles aside, you are right that this does not itself increase their money printing. There was to be an implicit tightening as they let the maturing MBS mature; now they are preventing that tightening. So this is not an actual expansion of their balance sheet, but it is a loosening of policy compared to what they had previously said they would do.

Whatever you call it, I think it still supports the point I was trying to make…

[Rich Toscano]

[quote=Eugene]
All that happens is that additional money is transferred to investors who sell existing Treasury bonds to the Fed. It’s certainly money creation, but the effect this would have on consumer demand and inflation is almost negligible.[/quote]

…which allows them to spend it on something else. (Of course they may spend it on other investments, perhaps that’s what you are getting at).

They can always cut taxes and finance the difference with newly printed money, which as Bernanke famously noted, would be akin to dropping money from helicopters.

[Rich Toscano]

[quote=Eugene]
All that happens is that additional money is transferred to investors who sell existing Treasury bonds to the Fed. It’s certainly money creation, but the effect this would have on consumer demand and inflation is almost negligible.[/quote]

…which allows them to spend it on something else. (Of course they may spend it on other investments, perhaps that’s what you are getting at).

They can always cut taxes and finance the difference with newly printed money, which as Bernanke famously noted, would be akin to dropping money from helicopters.

[Rich Toscano]

[quote=Eugene]
All that happens is that additional money is transferred to investors who sell existing Treasury bonds to the Fed. It’s certainly money creation, but the effect this would have on consumer demand and inflation is almost negligible.[/quote]

…which allows them to spend it on something else. (Of course they may spend it on other investments, perhaps that’s what you are getting at).

They can always cut taxes and finance the difference with newly printed money, which as Bernanke famously noted, would be akin to dropping money from helicopters.

[Rich Toscano]

[quote=Eugene]
All that happens is that additional money is transferred to investors who sell existing Treasury bonds to the Fed. It’s certainly money creation, but the effect this would have on consumer demand and inflation is almost negligible.[/quote]

…which allows them to spend it on something else. (Of course they may spend it on other investments, perhaps that’s what you are getting at).

They can always cut taxes and finance the difference with newly printed money, which as Bernanke famously noted, would be akin to dropping money from helicopters.

[Rich Toscano]

[quote=Eugene]
All that happens is that additional money is transferred to investors who sell existing Treasury bonds to the Fed. It’s certainly money creation, but the effect this would have on consumer demand and inflation is almost negligible.[/quote]

…which allows them to spend it on something else. (Of course they may spend it on other investments, perhaps that’s what you are getting at).

They can always cut taxes and finance the difference with newly printed money, which as Bernanke famously noted, would be akin to dropping money from helicopters.

[Rich Toscano]

[quote=Eugene][quote=Rich Toscano]INTJ… haven’t taken it for a while but iirc I was pretty strongly expressed in all the categories.[/quote]

I would’ve pegged you as an IST, purely on the basis of the existence of this web site…[/quote]

This site is pure N as I understand it… (though I’m far from an expert).

From the myers briggs site:

“Do you pay more attention to information that comes in through your five senses (Sensing), or do you pay more attention to the patterns and possibilities that you see in the information you receive (Intuition)?”

For housing (during the bubble), I would translate that to: do you give credence to the fact that home prices are going up (S), or do you try to understand what causalities are going on under the hood (N)?

So this site strikes me as very N, and most of my like-minded nerd friends are also N’s. Again, that’s based on my fairly superficial knowledge of all this stuff.

[Rich Toscano]

[quote=Eugene][quote=Rich Toscano]INTJ… haven’t taken it for a while but iirc I was pretty strongly expressed in all the categories.[/quote]

I would’ve pegged you as an IST, purely on the basis of the existence of this web site…[/quote]

This site is pure N as I understand it… (though I’m far from an expert).

From the myers briggs site:

“Do you pay more attention to information that comes in through your five senses (Sensing), or do you pay more attention to the patterns and possibilities that you see in the information you receive (Intuition)?”

For housing (during the bubble), I would translate that to: do you give credence to the fact that home prices are going up (S), or do you try to understand what causalities are going on under the hood (N)?

So this site strikes me as very N, and most of my like-minded nerd friends are also N’s. Again, that’s based on my fairly superficial knowledge of all this stuff.

[Rich Toscano]

[quote=Eugene][quote=Rich Toscano]INTJ… haven’t taken it for a while but iirc I was pretty strongly expressed in all the categories.[/quote]

I would’ve pegged you as an IST, purely on the basis of the existence of this web site…[/quote]

This site is pure N as I understand it… (though I’m far from an expert).

From the myers briggs site:

“Do you pay more attention to information that comes in through your five senses (Sensing), or do you pay more attention to the patterns and possibilities that you see in the information you receive (Intuition)?”

For housing (during the bubble), I would translate that to: do you give credence to the fact that home prices are going up (S), or do you try to understand what causalities are going on under the hood (N)?

So this site strikes me as very N, and most of my like-minded nerd friends are also N’s. Again, that’s based on my fairly superficial knowledge of all this stuff.

[Rich Toscano]

[quote=Eugene][quote=Rich Toscano]INTJ… haven’t taken it for a while but iirc I was pretty strongly expressed in all the categories.[/quote]

I would’ve pegged you as an IST, purely on the basis of the existence of this web site…[/quote]

This site is pure N as I understand it… (though I’m far from an expert).

From the myers briggs site:

“Do you pay more attention to information that comes in through your five senses (Sensing), or do you pay more attention to the patterns and possibilities that you see in the information you receive (Intuition)?”

For housing (during the bubble), I would translate that to: do you give credence to the fact that home prices are going up (S), or do you try to understand what causalities are going on under the hood (N)?

So this site strikes me as very N, and most of my like-minded nerd friends are also N’s. Again, that’s based on my fairly superficial knowledge of all this stuff.

[Rich Toscano]

[quote=Eugene][quote=Rich Toscano]INTJ… haven’t taken it for a while but iirc I was pretty strongly expressed in all the categories.[/quote]

I would’ve pegged you as an IST, purely on the basis of the existence of this web site…[/quote]

This site is pure N as I understand it… (though I’m far from an expert).

From the myers briggs site:

“Do you pay more attention to information that comes in through your five senses (Sensing), or do you pay more attention to the patterns and possibilities that you see in the information you receive (Intuition)?”

For housing (during the bubble), I would translate that to: do you give credence to the fact that home prices are going up (S), or do you try to understand what causalities are going on under the hood (N)?

So this site strikes me as very N, and most of my like-minded nerd friends are also N’s. Again, that’s based on my fairly superficial knowledge of all this stuff.

[Rich Toscano]

[quote=Eugene]
It does not matter how much money the Fed is going to spend buying Treasuries, if the government is not willing to spend that money. The evidence so far is that every billion dollars of additional government spending has to face an uphill battle in the Congress. Come November, Democrats will probably lose 6 to 8 seats in the Senate and we can forget about any additional stimulus.
[/quote]

This is not relevant… the government doesn’t need to increase its spending for the mechanism I described to increase the amount of money in the economy.

[Author]

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