tag:blogger.com,1999:blog-6616959642391988608.post4069525971447767776..comments2024-03-28T00:18:25.641-07:00Comments on Calafia Beach Pundit: No reason to worry about jobs growthScott Grannishttp://www.blogger.com/profile/14028519647946868684noreply@blogger.comBlogger8125tag:blogger.com,1999:blog-6616959642391988608.post-51303610381400280292015-03-08T17:05:38.149-07:002015-03-08T17:05:38.149-07:00The $1.5 trillion "gap" between total no...The $1.5 trillion "gap" between total note and bond purchases and excess reserves you refer to is mainly accounted for by currency in circulation (just over $1.3 trillion currently). For every dollar of currency the Fed emits, it must receive and hold one dollar of reserves.<br /><br />Banks get currency from the Fed on demand, by tendering bank reserves.Scott Grannishttps://www.blogger.com/profile/14028519647946868684noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-40690197316867041312015-03-08T16:55:27.986-07:002015-03-08T16:55:27.986-07:00I still don't get the $1.5 trillion gap betwee...I still don't get the $1.5 trillion gap between the $2.5 trillion in reserves and the $4 trillion in bonds the Fed bought...Benjamin Colehttps://www.blogger.com/profile/14001038338873263877noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-86384891224549192192015-03-08T08:20:13.576-07:002015-03-08T08:20:13.576-07:00Scott;
The weather and snow conditions in Park Cit...Scott;<br />The weather and snow conditions in Park City is perfect for spring skiing.<br />Bring plenty of sun block and you will have a great time.<br />Thanks for sharing your insights with usAnonymoushttps://www.blogger.com/profile/00255883927895795435noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-79250901949137912772015-03-08T07:39:18.937-07:002015-03-08T07:39:18.937-07:00Re: reserves. The important thing to keep in mind ...Re: reserves. The important thing to keep in mind is that the Fed for the most part did only one thing: it bought notes and bonds and it issued bank reserves, which are functionally equivalent to T-bills. It effectively turned some $4 trillion of notes and bonds into $4 trillion of T-bills. It was all done to satisfy the banking industry's demand for safe, interest-bearing assets. Scott Grannishttps://www.blogger.com/profile/14028519647946868684noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-25388019999850346342015-03-07T18:57:03.740-08:002015-03-07T18:57:03.740-08:00Andrew Ross:
You can see bank reserves here at th...Andrew Ross:<br /><br />You can see bank reserves here at this Fed website:<br /><br />http://www.federalreserve.gov/monetarypolicy/bst_recenttrends.htm<br /><br />There are excess reserves of about $2.5 trillion. <br /><br />Yes, that is about $7,860 in excess reserves for every man, woman and Child in the United States. <br /><br />The Fed since 2008 has bought about $4 trillion in bonds. See Benjamin Colehttps://www.blogger.com/profile/14001038338873263877noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-46822650765125532362015-03-07T13:18:53.631-08:002015-03-07T13:18:53.631-08:00You mentioned the huge excess of bank reserves. I...You mentioned the huge excess of bank reserves. I've read that it is to the tune of $2T. Have not seen that any place official looking. Also, not clear if that is world wide or just the US.<br /><br />If that is just the US, then to put it in perspective that would be about $6150 per person (325M US population). Or $16,800 per full time employee (119M full time employed).Andrewhttps://www.blogger.com/profile/01390035459036380103noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-19391109451055734642015-03-07T06:14:54.603-08:002015-03-07T06:14:54.603-08:00"Demand for dollars is outpacing the supply o..."Demand for dollars is outpacing the supply of dollars." Yes! And this is why the Fed shouldn't raise rates now. Unless you think velocity will move significantly to the upside - and I would argue there isn't a good reason to think this - then I don't see the case for raising rates. In addition, the Fed now has the underappreciated ability to merely raise the rate paid Grechsterhttps://www.blogger.com/profile/08898953158865778397noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-13184917468257451282015-03-07T01:11:18.230-08:002015-03-07T01:11:18.230-08:00Very interesting post.
I never know what to make ...Very interesting post. <br />I never know what to make out of the assumption that private sector borrowers and lenders will lose perspective if interest rates are too low.<br />Can bank lending to viable borrowers lead to inflation?<br />I still think the problem is the 10 million people without jobs. And, yes taxes are too high, many regulations are stupid.Benjamin Colehttps://www.blogger.com/profile/14001038338873263877noreply@blogger.com