tag:blogger.com,1999:blog-6616959642391988608.post8366104133011272178..comments2024-03-19T02:45:37.685-07:00Comments on Calafia Beach Pundit: The Fed "disappoints" and that is goodScott Grannishttp://www.blogger.com/profile/14028519647946868684noreply@blogger.comBlogger9125tag:blogger.com,1999:blog-6616959642391988608.post-8938719103885743212012-08-03T11:05:42.076-07:002012-08-03T11:05:42.076-07:00MMTer’s don’t understand balance sheets and their ...MMTer’s don’t understand balance sheets and their interaction with income statements and are stuck on the income statement. Savings from surplus doesn’t take away from the income of someone else. Wealth creation actually does happen and it shows up on the balance sheet.<br /><br />Another wacky MMT thing is the belief that there can be no money created without deficits. That is, government Squirehttps://www.blogger.com/profile/14088030568579672500noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-30120202387744200522012-08-03T00:17:20.360-07:002012-08-03T00:17:20.360-07:00Squire. That's not MMT specifically, it's ...Squire. That's not MMT specifically, it's an old-fashioned boring accounting identity. Type 'sector balances' into Google and you'll see charts going back showing the government and private sector run exactly opposite balances (with the foreign sector comprising the difference). <br /><br />The difficulty with national accounting is how different it is from personal accountingKDhttps://www.blogger.com/profile/12154167375689021192noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-22421087675678234062012-08-02T20:50:21.023-07:002012-08-02T20:50:21.023-07:00KD. Wa What? Citizens in aggregate can’t save mo...KD. Wa What? Citizens in aggregate can’t save money unless the government runs a deficit? What is that, Modern Monetary Theory? If it is then the answer is I just don’t understand Modern Monetary Theory as that is always the answer from MMT’ers.Squirehttps://www.blogger.com/profile/14088030568579672500noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-62897353234811946302012-08-02T20:34:01.995-07:002012-08-02T20:34:01.995-07:00Scott, I'm still really confused about how you...Scott, I'm still really confused about how you can come to the conclusion that it's fiscal policy that will 'work' at this point, but also think that the key is fiscal contraction. At a sector balance level the government deficit has to equal private sector savings (excluding the foreign sector) so if the government doesn't run a deficit then the private sector as a whole, by KDhttps://www.blogger.com/profile/12154167375689021192noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-10687077912090086892012-08-02T19:54:49.753-07:002012-08-02T19:54:49.753-07:00There is a newish school of thought (although the ...There is a newish school of thought (although the school draws heavily upon Milton Friedman), Market Monetarism, that contends there is a great deal more the Fed could do, and the consequences would be beneficial, and involve little inflation. <br /><br />Paying interest on excess reserves is a dubious policy at this point, since we are so close to zero bound. Banks have an incentive to merely Benjamin Colehttps://www.blogger.com/profile/14001038338873263877noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-8074760856783480222012-08-02T18:40:52.483-07:002012-08-02T18:40:52.483-07:00With new Tier 1 requirements coming, regulations c...With new Tier 1 requirements coming, regulations crimping bank earnings coming, and the U.S. gov't playing russian roulette with the economy, would you lend? These banks just passed stress tests (not all of them!) in March, did we all forget that?scottmba09https://www.blogger.com/profile/09332253363925543023noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-26583326324493291072012-08-02T17:48:04.649-07:002012-08-02T17:48:04.649-07:00That's one of the most logical ideas I've ...That's one of the most logical ideas I've heard yet. How does it stand up to all the pundits here?Danhttps://www.blogger.com/profile/05572321242968104655noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-81634183750646573332012-08-02T14:18:44.986-07:002012-08-02T14:18:44.986-07:00FED should remove interest on excess reserves. The...FED should remove interest on excess reserves. The payment of the interest is deflationary, and the excess reserves interfere with the money market mechanism as it competes for the same liquidity. So if they remove the interest on excess reserves being paid, they create an inflationary effect, which is needed to get the economy going again. The ECB noticed that and took action, yet the FED is John Short ad sinorazumhttps://www.blogger.com/profile/06294518362102475267noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-920277818044620742012-08-02T12:18:38.054-07:002012-08-02T12:18:38.054-07:00Really, the goal has to be to cast off all the sha...Really, the goal has to be to cast off all the shackles of political correctness, public employee privilege, and the false promise of egalitarianism. One idea for reducing the monopolistic powers is to eliminate the IRC (Internal Revenue Code). It is an edifice to the greatest corruption that 30 to 40 years of liberal legislatures (both Republican and Democrat) could devise. Elimination of Squirehttps://www.blogger.com/profile/14088030568579672500noreply@blogger.com