tag:blogger.com,1999:blog-6616959642391988608.post5446803891782055206..comments2024-03-28T00:18:25.641-07:00Comments on Calafia Beach Pundit: The Fed is not "printing money"Scott Grannishttp://www.blogger.com/profile/14028519647946868684noreply@blogger.comBlogger24125tag:blogger.com,1999:blog-6616959642391988608.post-80863806117619756762016-10-11T11:42:10.720-07:002016-10-11T11:42:10.720-07:00Quick prize game question!?
Money based gameQuick prize game question!?<br /><a href="https://www.youtube.com/watch?v=VMqZDP7ZPhs" rel="nofollow">Money based game</a>John Adamhttps://www.blogger.com/profile/12247114803917461831noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-45388718159403828152016-07-12T10:34:17.870-07:002016-07-12T10:34:17.870-07:00This comment has been removed by the author.maunhadepsghttps://www.blogger.com/profile/17356601456918270389noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-34099194425815256812015-10-14T03:26:55.379-07:002015-10-14T03:26:55.379-07:00thanks for share
nha xinh
thiet ke nhathanks for share<br /><br /><br /><br /><a href="http://thietkenha.asia/" title="nha xinh" rel="nofollow">nha xinh</a><br /><a href="http://nhaxinhcenter.com/" title="thiet ke nha" rel="nofollow">thiet ke nha</a><br /><br /><br />thiet ke nha dephttps://www.blogger.com/profile/13079495896964228424noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-76997665682254902322015-02-05T04:08:50.536-08:002015-02-05T04:08:50.536-08:00Fed policy may indeed pose the risk of serious deb...Fed policy may indeed pose the risk of serious debasement in the future, but to date there is little or no evidence to suggest that this has occurred. <a href="http://makerealmoneyonlinefree.com/" rel="nofollow">make real money online</a>Anna Schaferhttps://www.blogger.com/profile/09633259957714692411noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-54982099693457309472013-09-11T10:15:08.541-07:002013-09-11T10:15:08.541-07:00Marcin: I think I've made it clear in my many ...Marcin: I think I've made it clear in my many posts on this subject that I do in fact understand the situation. Of course banks don't lend out reserves, but they do need reserves to make loans. Given the abundance of reserves today, banks effectively have no constraints on their ability to lend. Currently banks are holding a massive amount of excess reserves (reserves that are not needed Scott Grannishttps://www.blogger.com/profile/14028519647946868684noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-3922626403552296012013-09-11T01:40:34.508-07:002013-09-11T01:40:34.508-07:00I really enjoy reading your analyses and have foun...I really enjoy reading your analyses and have found them to be very accurate in terms of foresight, but there is a major conceptual flaw that keeps recurring in one of your arguments. I'm referring to how you postulate that banks are content with holding reserves and how those reserves may be used to ramp up loans in the future, leading to increased inflation. Banks in aggregate cannot reduceAnonymoushttps://www.blogger.com/profile/09617029528813211568noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-54057869305572716812013-04-04T18:26:55.866-07:002013-04-04T18:26:55.866-07:00Of course the Fed is “printing money”. When the Fe...Of course the Fed is “printing money”. When the Fed buys bonds during OMO, it exchanges non-interest bearing debt for interest bearing debt. The non-interest bearing debt is created “out of thin air” with the Fed’s “magic checkbook” given by Congress. The non-interest bearing debt comprises the monetary base. The monetary base consists of cash and reserves. The Fed has no control over the amount kendmwhttps://www.blogger.com/profile/11465633992952016683noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-71224522742667068452013-03-21T15:20:31.175-07:002013-03-21T15:20:31.175-07:00Curiously, a few days later:
http://www.forbes.com...Curiously, a few days later:<br />http://www.forbes.com/sites/bobmcteer/2013/03/21/the-fed-has-not-been-printing-boatloads-of-money/Paul A. Bronihttps://www.blogger.com/profile/17847429700051307594noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-2543111533752410072013-03-21T03:28:37.621-07:002013-03-21T03:28:37.621-07:00It's all a "Confidence Game" As lon...It's all a "Confidence Game" As long as we believe the 'Judas Goat' then everything will be fine. Sometimes 'Force Majore' intervene to upset the applecart. Johnny_Ceronehttps://www.blogger.com/profile/04265085333475508165noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-35666913039582023092013-03-20T20:32:11.775-07:002013-03-20T20:32:11.775-07:00Have you bought any groceries lately?Have you bought any groceries lately?Philip Keatonhttps://www.blogger.com/profile/12178904685412349793noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-89600289319326100482013-03-20T07:39:24.532-07:002013-03-20T07:39:24.532-07:00Miami condo prices up 25% year-over-year. Now tha...Miami condo prices up 25% year-over-year. Now that is getting "interesting"!Jeffhttps://www.blogger.com/profile/04068805988034886750noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-70263405063413442862013-03-19T20:24:31.125-07:002013-03-19T20:24:31.125-07:00Excellent work, Scott. I also agree that the big ...Excellent work, Scott. I also agree that the big unknown here is what happens when an if the relative preference for cash relative to other goods declines. I, like you, thing there is considerable reasons to be nervous. Having said that, as long as the demand for good and services remains depressed, we won't find out.Anonymoushttps://www.blogger.com/profile/15912228409832648957noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-12125182355633978842013-03-19T10:52:34.728-07:002013-03-19T10:52:34.728-07:00I think you are confusing "demand for money&q...I think you are confusing "demand for money" with "demand for loans." The demand for money means the desire to hold cash, and cash equivalents. Holding cash and cash equivalents is being "long" of money: holding money, not borrowing it. Increased demand for loans, in contrast, is the opposite of the increased demand for money, since it is being "short" of Scott Grannishttps://www.blogger.com/profile/14028519647946868684noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-10009036142547099722013-03-19T10:43:47.741-07:002013-03-19T10:43:47.741-07:00So it's not printing money? Tell that story to...So it's not printing money? Tell that story to Santa.<br /><br />M2/GDP is going up because "demand for money" is so high? The banks, who are taking excess deposits to London-based internal hedge funds (JPM: 60% loan/deposit ratio, meaning 40% is for speculation) do not seem to see any "high demand" for that money.<br /><br />If your theories weren't so wrong I wouldn&Gloeschihttps://www.blogger.com/profile/10705125909506053628noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-60911557493681051832013-03-19T09:09:41.286-07:002013-03-19T09:09:41.286-07:00I would argue looking at prices since 2008 sort of...I would argue looking at prices since 2008 sort of misses the path. Recent CB activity is specifically designed to maintain the misallocations of 2001-2007. Complete subsidizations of markets. Therefore it seems more relevant to ask where would prices be if CBs didn’t bailout everyone and how long can they artificially prop up asset markets. We have plenty of Canaries flying around….Public Libraryhttps://www.blogger.com/profile/00017383928897945054noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-90686792052367637482013-03-19T08:49:11.901-07:002013-03-19T08:49:11.901-07:00I understand Austrian theory. If the Fed were inde...I understand Austrian theory. If the Fed were indeed "too loose," as the Austrians believe they are, then I would agree that things would end badly. But I think my analysis of monetary policy shows that the Fed is not "too loose." More like "just about right." They may well become too loose in the future, something I worry about, but for now they are not. <br /><br /Scott Grannishttps://www.blogger.com/profile/14028519647946868684noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-61703056004108594962013-03-19T08:04:58.863-07:002013-03-19T08:04:58.863-07:00Over at the mises. Timely. I think you've fina...Over at the mises. Timely. I think you've finally become complacent. This will end terribly and everyone with a decent sense of markets knows this. Question is when. The suppression of volatility (taking duration out of the market) deprives the market of vital information necessary for a healthy market. Once suppression runs its course, eventually the dam burst wide open as everyone runs for Public Libraryhttps://www.blogger.com/profile/00017383928897945054noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-61914050283989283092013-03-19T07:48:52.165-07:002013-03-19T07:48:52.165-07:00Re: how much inflation we've had since the 198...Re: how much inflation we've had since the 1980s. In my long experience with the inflation statistics, I have often questioned whether they understate the actual rate of inflation. I have never been able to demonstrate to myself that they do. In fact, I am persuaded that the CPI actually overstates inflation by about 0.5% per year, the same conclusion reached by the famous Boskin Commission Scott Grannishttps://www.blogger.com/profile/14028519647946868684noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-60456748569406210472013-03-19T07:43:45.824-07:002013-03-19T07:43:45.824-07:00Re: the creation of bank reserves. It is done by a...Re: the creation of bank reserves. It is done by a simple accounting entry. Banks have accounts with the Federal Reserve in which they "own" bank reserves. If the Fed buys bonds, the bank that sells the bonds to the Fed gets credited in its account for the amount of the purchase. Not in dollars, but in "bank reserves." Bank reserves can be spent only by exchanging them (1 for Scott Grannishttps://www.blogger.com/profile/14028519647946868684noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-88566624760059562562013-03-19T07:17:09.891-07:002013-03-19T07:17:09.891-07:00I've got a question, and I truly want to under...I've got a question, and I truly want to understand the process of all this "reserve creation." I am one of those people that believe the Fed is <b><i>indirectly</i></b> printing money. <br /><br />You say: "In effect, the Fed has been doing nothing more than swapping newly-created bank reserves for bonds and currency, and the world and the banking system have been happy to Anonymoushttps://www.blogger.com/profile/01311246825623707291noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-59424784632400701562013-03-19T04:31:21.766-07:002013-03-19T04:31:21.766-07:00I enjoy reading your blog and for the most part fi...I enjoy reading your blog and for the most part find it very instructive. But your figure of 2.5 percent inflation over the long run does not agree with the reality of my experience over the last few decades. Prices in the 1980's were clearly significantly less than half of what they are today no matter what magic comes out of the government's figures.Garage.itemshttps://www.blogger.com/profile/03402544138908760542noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-62231432974786683542013-03-19T01:11:39.951-07:002013-03-19T01:11:39.951-07:00Watch out for rising interest rates in the near to...Watch out for rising interest rates in the near to mid-term...McKibbinUSAhttps://www.blogger.com/profile/10545798495680527622noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-8869931293065512862013-03-18T21:51:01.996-07:002013-03-18T21:51:01.996-07:00Very interesting blogging.
I think when the Fed ...Very interesting blogging. <br /><br />I think when the Fed engages in sustained QE, it is paying cash (digitized, but nevertheless) for those assets it buys.<br /><br />The asset sellers can then spend the money, or re-invest it (both good). This tends to raise real output, and asset prices, both good. <br /><br />I sense the Fed should buy only US Treasuries, so it is not politicized. The Benjamin Colehttps://www.blogger.com/profile/14001038338873263877noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-48743380150330393852013-03-18T20:19:59.975-07:002013-03-18T20:19:59.975-07:00well i finally had to go to the trouble of signing...well i finally had to go to the trouble of signing in to respond to this post.<br /><br />if the consumer was in one great big "deleveraging" as Even You Admit, then when the money supply continues to go up, what does that tell you about what the gov't and fed have been doing? does it tell you anything, calafia?<br /><br />it surely tells me something and i think it should've Unknownhttps://www.blogger.com/profile/03453898222869146262noreply@blogger.com