tag:blogger.com,1999:blog-6616959642391988608.post1088972271592017120..comments2024-03-28T00:18:25.641-07:00Comments on Calafia Beach Pundit: The problem with unwanted moneyScott Grannishttp://www.blogger.com/profile/14028519647946868684noreply@blogger.comBlogger14125tag:blogger.com,1999:blog-6616959642391988608.post-31021271561991142722022-06-06T22:36:34.134-07:002022-06-06T22:36:34.134-07:00This comment has been removed by the author.softwarehttps://www.blogger.com/profile/04169625770209429424noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-58276252838016684432021-03-29T05:52:40.386-07:002021-03-29T05:52:40.386-07:00A lot of the classic thinking involves a concept o...A lot of the classic thinking involves a concept of stable money velocity, an assumption which no longer holds because (among other factors) of central bank interference (propping up of PY by artificial ultra-low interest rate support) and because of the levels that global debt has reached (the point of no return).<br />As more support (supply) is provided in an increasingly leveraged economy, Carlhttps://www.blogger.com/profile/01792779708580094262noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-19704162066723050002021-03-28T07:00:16.551-07:002021-03-28T07:00:16.551-07:00Blogger Salmo Truttra bellowed, blabbered, bloviat...<br />Blogger Salmo Truttra bellowed, blabbered, bloviated, and pontificated:<br /><br />"Economists are both vacuous and absolutely retarded".<br /><br />"Economists are stupid".<br /><br />Thank you for informing us, Mr. Tutu.<br />You are certainly an expert on s t u p i d.The Cliff Claven of Financehttps://www.blogger.com/profile/13541954550199246606noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-84759019816341898422021-03-27T11:37:21.828-07:002021-03-27T11:37:21.828-07:00re: " inflation and interest rates should hav...re: " inflation and interest rates should have been much, much higher from 1980 to 2020 than they were."<br /><br />Hardly. The DIDMCA of March 31st 1980 deregulated all interest rates. It also destroyed the nonbanks, i.e., caused the S&L crisis and the 1990-1991 recession (as predicted in May 1980).<br /><br />Velocity was also predicted to have permanently plateaued.Salmo Truttahttps://www.blogger.com/profile/13910212017849902362noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-62370878983608620492021-03-27T07:36:23.718-07:002021-03-27T07:36:23.718-07:00Benjamin Cole--"beyond any shadow of a doubt,...Benjamin Cole--"beyond any shadow of a doubt, that inflation and interest rates should have been much, much higher from 1980 to 2020 than they were.<br /><br />Some aspects of globalized capital markets are interesting. Depending on what you count, there are about $450 trillion in assets globally, in stocks, bonds, property. Money is fungible, and can move from class to class with the click wkevinwhttps://www.blogger.com/profile/17600473578823788550noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-90078257930578999212021-03-26T07:42:29.930-07:002021-03-26T07:42:29.930-07:00Economists are stupid. An individual bank may see...Economists are stupid. An individual bank may seem like it's acting as an intermediary, but when viewed from the standpoint of the system, banks act entirely different.Salmo Truttahttps://www.blogger.com/profile/13910212017849902362noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-78386627313450491792021-03-26T04:49:50.525-07:002021-03-26T04:49:50.525-07:00It's simple, but mind boggling. The Japanese ...It's simple, but mind boggling. The Japanese economy proves this too. The Japanese save more and keep more of their savings impounded in their payment's system. And the BOJ insures all transaction deposits.<br /><br />That's the reason why velocity rose from 1961 to 1981 (the monetization of time deposits), and then has fallen ever since. That's the source of secular stagnationSalmo Truttahttps://www.blogger.com/profile/13910212017849902362noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-86335935423208280172021-03-26T04:23:21.237-07:002021-03-26T04:23:21.237-07:00All monetary savings originate within, not outside...All monetary savings originate within, not outside, of the payment's system. The source of interest bearing deposits is other bank deposits, directly or indirectly via the currency route (never more than a short-term situation), or through the bank's undivided profits accounts.<br /><br />There is one and only one way to activate monetary savings (funds held beyond the income period in Salmo Truttahttps://www.blogger.com/profile/13910212017849902362noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-37084756470554199022021-03-26T04:14:43.704-07:002021-03-26T04:14:43.704-07:00re: "of course banks lend out their deposits!...re: "of course banks lend out their deposits!"<br /><br />That's universally posited and universally an egregious error. It's a confusion of debits and credits. If you tally the inputs and outputs impacting the commercial banking system, you will find that while large in the aggregate, e.g., capital stock, Reserve bank credit, etc., they are nevertheless peripheral and Salmo Truttahttps://www.blogger.com/profile/13910212017849902362noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-59343279246582545212021-03-26T01:22:08.004-07:002021-03-26T01:22:08.004-07:00BTW, those of your with "unwanted money"...BTW, those of your with "unwanted money" can send it along to me. Benjamin Colehttps://www.blogger.com/profile/14001038338873263877noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-70566131923382611682021-03-25T06:41:05.152-07:002021-03-25T06:41:05.152-07:00I am absolutely convinced, beyond any shadow of a ...I am absolutely convinced, beyond any shadow of a doubt, that inflation and interest rates should have been much, much higher from 1980 to 2020 than they were.<br /><br />Some aspects of globalized capital markets are interesting. Depending on what you count, there are about $450 trillion in assets globally, in stocks, bonds, property. Money is fungible, and can move from class to class with the Benjamin Colehttps://www.blogger.com/profile/14001038338873263877noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-69278330504930039242021-03-24T18:04:50.565-07:002021-03-24T18:04:50.565-07:00Salmo: of course banks lend out their deposits! Ho...Salmo: of course banks lend out their deposits! How else do you think they can earn the money to pay interest on the deposits? Today banks are lending the bulk of their deposit inflows to the Fed. In return the banks hold bank reserves, which pay 0.1% interest and are effectively T-bill substitutes. <br /><br />As you note, bank lending is what allows the money supply (including deposits) to growScott Grannishttps://www.blogger.com/profile/14028519647946868684noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-57892424174198233312021-03-24T12:43:31.891-07:002021-03-24T12:43:31.891-07:00The demand for money is a contrivance. M2 compris...The demand for money is a contrivance. M2 comprises both transaction deposits and savings' deposits. Transaction deposit turnover, as represented by demand deposits, is greater than 95:1 over savings deposits. <br /><br />Economists are both vacuous and absolutely retarded. Banks don't loan out deposits. Deposits are the result of lending. So, all bank-held savings are frozen. <br /><Salmo Truttahttps://www.blogger.com/profile/13910212017849902362noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-73961568688359415682021-03-24T05:18:56.612-07:002021-03-24T05:18:56.612-07:00Informative, as usual.
"This is another way ...Informative, as usual.<br /><br />"This is another way of saying that a tsunami of unwanted cash likely is going to lift the prices of just about everything, and that is another way of saying we are going to see more inflation in the years to come, UNLESS the Fed reverses course. Which they have promised not to do for at least another year and a half."<br /><br />-Isn't this the Carlhttps://www.blogger.com/profile/01792779708580094262noreply@blogger.com