tag:blogger.com,1999:blog-6616959642391988608.post2405932831730759179..comments2024-03-28T00:18:25.641-07:00Comments on Calafia Beach Pundit: Core inflation is a solid 2%Scott Grannishttp://www.blogger.com/profile/14028519647946868684noreply@blogger.comBlogger21125tag:blogger.com,1999:blog-6616959642391988608.post-46630785389506762762016-05-25T06:16:49.793-07:002016-05-25T06:16:49.793-07:00Ben Jamin, anything is possible if there is a will...Ben Jamin, anything is possible if there is a will!<br /><br />One could return to the old system, wherein "public" semi-workers could<br />receive lower pay in return for an excellent pension.<br /><br />Anything is doable, including SS and M & M (elimination) but I am afraid there is no<br />"public" will for it. <br /><br />Economics, will have to do the dirty work for Hanshttps://www.blogger.com/profile/05183141792723754273noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-89071492985335679672016-05-24T17:39:24.972-07:002016-05-24T17:39:24.972-07:00Hans-
I'll say it again-- Federal agency spen...Hans-<br /><br />I'll say it again-- Federal agency spending should be cut in half, civilian and military.<br /><br />There should be no pension programs for any public employee, state, local, federal civilian or military. Such programs are inevitably time bombs.<br /><br />At this juncture, I do not see how we can replace Social Security and Medicare. We can only hope to cut spending.<br /><Benjamin Colehttps://www.blogger.com/profile/14001038338873263877noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-10537120654648919622016-05-24T06:00:00.985-07:002016-05-24T06:00:00.985-07:00Ben Jamin, I would suggest that the rightwingers w...Ben Jamin, I would suggest that the rightwingers would do away<br />with the incompetent VA system, however, too many Repubcos<br />are either RINOcans or moderates.<br /><br />Regarding the previous citizen-soldiers defensive, will be returning<br />in due time as the cost of operating the ALL volunteer military is not<br />cost effective. Around 2035, wages and benefits will account for the<brHanshttps://www.blogger.com/profile/05183141792723754273noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-19414755612377996892016-05-23T19:34:53.164-07:002016-05-23T19:34:53.164-07:00Hans--
The US Constitutional authority for much o...Hans--<br /><br />The US Constitutional authority for much of what the modern-day Fed does is lacking. But then our Founding Fathers loathed, detested and reviled a standing military as well, and preferred citizen-soldier militias to be the backbone of our war-making ability. <br /><br />We lived with citizen-soldiers through WWII and the Korean War. Now we have a professional, federalized and Benjamin Colehttps://www.blogger.com/profile/14001038338873263877noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-34535286956440596102016-05-23T10:14:12.035-07:002016-05-23T10:14:12.035-07:00Here's the problem with the economy that must ...Here's the problem with the economy that must be fixed before we do anything else...<br /><br />https://youtu.be/_XDVne27BaU?list=PL8h4sleiAEjXuabdE7VAEmx0UiguNZVlmMcKibbinUSAhttps://www.blogger.com/profile/10545798495680527622noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-22200428754300581442016-05-23T04:17:16.948-07:002016-05-23T04:17:16.948-07:00Ben Jamin, I see you are heads up over most of us....Ben Jamin, I see you are heads up over most of us.<br /><br />I just recently read about these phony "Maiden Lane" whore entities;<br />invoked by the FRS or as the fed calls them SPVs or Special Purpose Vehicles.<br />(perhaps they could get Google to have them self fund)<br /><br />They clearly have worked outside of the law, by funding non-banks and foreign<br />entities. No one Hanshttps://www.blogger.com/profile/05183141792723754273noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-87531842871687613892016-05-21T20:46:34.064-07:002016-05-21T20:46:34.064-07:00Hans-
I certainly agree with you in one regard: I...Hans-<br /><br />I certainly agree with you in one regard: In a democracy, public agencies have an obligation to be transparent, and KISS should be the rule. <br /><br />For example, a tax code with 25,000 pages of impossible to decipher print is not democratic.<br /><br />The Fed, with its buying and selling of bonds through 22 primary dealers, its IOER, its mysterious reverse repo buying, its Benjamin Colehttps://www.blogger.com/profile/14001038338873263877noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-66346584686528165612016-05-21T07:10:20.662-07:002016-05-21T07:10:20.662-07:00Well, Mr Grech, your paragraph nailed it, IMHO.
T...Well, Mr Grech, your paragraph nailed it, IMHO.<br /><br />The taxpayers will be left holding the bank's empty bags.<br />We are all porters for banker's cartage. <br /><br />Ben Jamin, for the record before the FRS there were only<br />several serious inflation periods which a Central Bank could<br />not have controlled.<br /><br />Now, for the Central Bank consortium, inflation has Hanshttps://www.blogger.com/profile/05183141792723754273noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-16272719431133079932016-05-20T18:06:50.146-07:002016-05-20T18:06:50.146-07:0010 year US Treasuries at 1.84%.
Sophisticated ins...10 year US Treasuries at 1.84%.<br /><br />Sophisticated institutional investors say inflation is dead. Or possibly the CPI overstates inflation.<br /><br />Absent property zoning we might see deflation.<br />Benjamin Colehttps://www.blogger.com/profile/14001038338873263877noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-45959496715908286372016-05-20T06:50:37.294-07:002016-05-20T06:50:37.294-07:00Hans: I never commented on, nor do I have any opin...Hans: I never commented on, nor do I have any opinion on, the price at which the Fed's paper will mature. I assume Treasuries will mature at par, of course. MBS? Who knows? In any event, I don't think it will matter much (as you imply).<br /><br />Now that you raise the issue... Whatever the discount to par (upon maturity), this will represent the transfer of wealth from the American Grechsterhttps://www.blogger.com/profile/08898953158865778397noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-17056212236804646112016-05-20T05:56:10.738-07:002016-05-20T05:56:10.738-07:00http://www.investors.com/politics/editorials/will-...http://www.investors.com/politics/editorials/will-these-new-rules-kill-the-housing-market/<br /><br />Dodd and Frankk, keeping the consumer safe by pricing them<br />out of the housing market!<br /><br />Dodd and Frankk, great for statists whom wish for more section<br />8 and other governmental unit housing.Hanshttps://www.blogger.com/profile/05183141792723754273noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-50400345515475422002016-05-20T05:35:43.141-07:002016-05-20T05:35:43.141-07:00Mr Grannis, thank you for your comments.
Saxo Ban...Mr Grannis, thank you for your comments.<br /><br />Saxo Bank CIO & Chef economist Steen Jakobsen has penned the<br />following:<br /><br />https://mishtalk.com/2016/05/18/new-nothingness-central-banks-are-powerless-they-should-go-away-steen-jakobsen/<br /><br />"In my opinion as an economist and a market observer, people are smarter than central banks."<br /><br />With such a Hanshttps://www.blogger.com/profile/05183141792723754273noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-24732711134256816152016-05-19T17:22:27.202-07:002016-05-19T17:22:27.202-07:00Getting rid of the Fed's MBS holdings is not t...Getting rid of the Fed's MBS holdings is not too difficult: just stop rolling over interest payments and principal payments. The average mortgage is refinanced about every 7 years, so the Fed's MBS holdings could shrink dramatically in 10 years' time without having to sell anything.<br /><br />Not rolling over Treasuries would work about the same way, except that the average maturity Scott Grannishttps://www.blogger.com/profile/14028519647946868684noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-17242002189314875012016-05-19T13:02:19.447-07:002016-05-19T13:02:19.447-07:00Mr Grech, are you suggesting that all of the FRS p...Mr Grech, are you suggesting that all of the FRS paper holdings<br />will mature at par?<br /><br />What of the toxic MBS purchased from Fred and Fran?<br /><br />And what will banks do with the excess reserves? How will the<br />Central Bank deal with them?<br /><br />There will come a time when this issue will have to be addressed.Hanshttps://www.blogger.com/profile/05183141792723754273noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-52777518921243070942016-05-19T12:59:19.403-07:002016-05-19T12:59:19.403-07:00This comment has been removed by the author.Hanshttps://www.blogger.com/profile/05183141792723754273noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-45656456994565462642016-05-19T12:13:52.380-07:002016-05-19T12:13:52.380-07:00Things would have to change markedly for the bette...Things would have to change markedly for the better for the Fed to even contemplate unwinding its holdings. With the facts as they exist today, I expect it'll hold until maturity for roughly every piece of paper it owns. And that may not be so terrible. The unwinding question isn't even appropriate until we see the Fed stop its payments on excess reserves.Grechsterhttps://www.blogger.com/profile/08898953158865778397noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-47062384823588198802016-05-19T05:22:08.114-07:002016-05-19T05:22:08.114-07:00i demand more qei demand more qemarcusbalbushttps://www.blogger.com/profile/13596266889368486043noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-66275558080702640422016-05-19T04:47:09.973-07:002016-05-19T04:47:09.973-07:00Second query, how will the FRS unwind excess bank
...Second query, how will the FRS unwind excess bank<br />reserves, from their failed QEs? <br /><br />Will they simply return all of those notes, bonds and MBS?<br /><br />I can wait for any and all answers, if any.Hanshttps://www.blogger.com/profile/05183141792723754273noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-40473898893092327722016-05-18T17:28:27.675-07:002016-05-18T17:28:27.675-07:00Query: Should the Fed raise rates and interest on ...Query: Should the Fed raise rates and interest on excess reserves another 0.25% in June, what will happen to long-term rates? Down? I think so.<br /><br />And banks get another large dollop of dough (from the Fed, at taxpayer expense) for doing nothing.<br /><br />The USDA model applied to finance?Benjamin Colehttps://www.blogger.com/profile/14001038338873263877noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-6610973467485071322016-05-18T15:46:40.080-07:002016-05-18T15:46:40.080-07:00Let's face it, dollars are scarce along Main S...Let's face it, dollars are scarce along Main Street USA -- maybe that's good -- in the mean time, I urge investors to demand higher rents and dividends regardless of the phony inflation data -- investors should be seeking value instead of growth in today's high risk markets.McKibbinUSAhttps://www.blogger.com/profile/10545798495680527622noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-15465666434325326432016-05-17T22:40:43.846-07:002016-05-17T22:40:43.846-07:00Good post...but the inflation trends are down. 1.1...Good post...but the inflation trends are down. 1.1% YoY? This is inflation or a measurement error?<br /><br />Anyway, the Fed target (not ceiling) is 2% on core PCE. The Fed has missed low for years, alongside anemic growth.<br /><br />Yes, the US needs lower taxes, lighter regulations, and to eliminate property zoning. <br /><br />But monetary asphyxiation does not improve the regulatory and taxBenjamin Colehttps://www.blogger.com/profile/14001038338873263877noreply@blogger.com