Priming the Pump: The Fed is Printing like Mad »

RSS Join the Discussion

Comments So Far: 25 (view all)

- Display No Filter Fair Comments - 25% and above Good Comments - 50% and above Excellent Comments - 75% and above

• 100%

  flyonthewallzz9 months, 2 weeks ago

  This comment is below the standard viewing threshold View It »

  http://research.stlouisfed.org/fred2/series/AMBNS
  
  Nostalgia provided the link to this graph in an earlier story.
  It is worth taking a peek.

  (comment_max_expanded_depth : 2) (comment depth : 2) (recursion depth : 1) (max_comment_reply_depth : 40) (comment_max_render_depth : 3)

  Reply

  13 Replies

  loading ...
  • 100%

    flyonthewallzz9 months, 2 weeks ago

    This comment is below the standard viewing threshold View It »

    http://en.wikipedia.org/wiki/Bernanke_Doctrine
    
    I know that it is bad form to use Wikipedia as a source, but I just got lazy.
    I do not understand it: but it appears that we are following the Bernanke Doctrine on steroids.
    1) Increase the money supply.
    2) Ensure liquidity makes its way into the financial system through a variety of measures.
    3) Lower interest rates - all the way down to 0 per cent.
    4) Control the yield on corporate bonds and other privately issued securities.
    5) Depreciate the U.S. dollar.
    6) Execute a de facto depreciation by buying foreign currencies on a massive scale.
    7) Buy industries throughout the U.S. economy with "newly created money"
    
    These actions are to combat deflation. (head scratching?)
    I can not help but wonder if the chairman of the Fed is dealing out the cards as he sees fit.
    It makes me wonder about our silly partisan arguments, when the finance industry is holding the deck. (and peeking)

    (comment_max_expanded_depth : 2) (comment depth : 3) (recursion depth : 2) (max_comment_reply_depth : 40) (comment_max_render_depth : 3)

    Reply

    12 Replies

    loading ...
    • 100%

      nostalgia9 months, 2 weeks ago

      This comment is below the standard viewing threshold View It »

      Fly
      
      No one knows what the Fed is doing
      Many members of Congress, including Ron Paul, have been very vocal about the secrecy of the Fed and the inability to get information
      
      Fox Business has been trying to get info from Treasury on the first TARP bailout - who received the money, what the taxpayers received as collateral etc - and were stonewalled. Treasury wanted 90-180 days to produce the info
      A Federal judge today gave Treasury 30 days to produce the information
      
      Fox Business also filed a FOIA request for info from the Fed and were turned down flat - no delay just flat out NO
      That case is also going to a federal judge
      
      The Fed is out of control
      We are going to see inflation like we have never seen before
      
      No one controls the Fed. Even the President can't fire the Fed chairman without cause
      Neither the executive or legislative branch can change or veto a Fed decision.
      
      We are going to get a peek at what is coming next week when Obama gives his speech to a joint session of Congress
      
      The entire week is going to be devoted to meetings etc regarding the economy

      (comment_max_expanded_depth : 2) (comment depth : 4) (recursion depth : 3) (max_comment_reply_depth : 40) (comment_max_render_depth : 3)

      Reply

      11 Replies

      loading ...
• 100%

  flyonthewallzz9 months, 2 weeks ago

  This comment is below the standard viewing threshold View It »

  http://www.federalreserve.gov/boardDocs/speeches/2...
  
  This is over my head: but it was the only link footnoted by Wikipedia. I may have been reading to fast.... but I did not see a reference to point #7).
  I should not have jumped the gun with Wikipedia, because #7) is the most creepy, and I can not verify it.
  sorry.....

  (comment_max_expanded_depth : 2) (comment depth : 2) (recursion depth : 1) (max_comment_reply_depth : 40) (comment_max_render_depth : 3)

  Reply

  7 Replies

  loading ...
  • 100%

    nostalgia9 months, 2 weeks ago

    This comment is below the standard viewing threshold View It »

    "I should not have jumped the gun with Wikipedia, because #7) is the most creepy, and I can not verify it."
    
    What is going on with the auto industry and the large banks?
    Did you hear what Senator Dodd said -
    Bloomberg: Sen. Chris Dodd, D-Conn., and chairman of the Senate Banking Committee, said that the nation’s banks may have to be nationalized for “a short time” to help companies like Citigroup and Bank of America weather the economic storm
    
    This led to a hasty denial by the White House and the CEO of BofA
    You know it's being discussed

    (comment_max_expanded_depth : 2) (comment depth : 3) (recursion depth : 2) (max_comment_reply_depth : 40) (comment_max_render_depth : 3)

    Reply

    6 Replies

    loading ...
    • Neutral

      nostalgia9 months, 2 weeks ago

      This comment is below the standard viewing threshold View It »

      Ron Paul has been talking a great deal about the Austrian School of economics
      
      This is what the Austrian School believes about inflation (I took this from Wikipedia but it is essentially what Ron Paul said in a speech he gave in Houston)
      :
      The Austrian School has consistently argued that a "traditionalist" approach to inflation yields the most accurate understanding of the causes (and the cure) for inflation. Austrian economists maintain that inflation is always and everywhere simply an increase in the money supply (i.e. units of currency or means of exchange), which in turn leads to a higher nominal price level for assets (such as housing) and other goods and services in demand, as the real value of each monetary unit is eroded, loses purchasing power and thus buys fewer goods and services.
      
      Given that all major economies currently have a central bank supporting the private banking system, almost all new money is supplied into the economy by way of bank-created credit (or debt). Austrian economists believe that this bank-created credit growth (which forms the bulk of the money supply) sets off and creates volatile business cycles (see Austrian Business Cycle Theory) and maintain that this "wave-like" or "boomerang" effect on economic activity is one of the most damaging effects of monetary inflation.
      According to the Austrian Business Cycle Theory, it is the central bank's policy of ineffectually attempting to control the complex multi-faceted ever-evolving market economy that creates volatile credit cycles or business cycles, and, as a necessary by-product, inflation (especially in asset markets). By the central bank artificially "stimulating" the economy with artificially low interest rates (thereby permitting excessive increases in the money supply), the government-sponsored central bank itself allows debasement of the means of exchange (inflation), often focused in asset or capital markets, resulting in "false signals" going out to the market place, in turn resulting in clusters of malinvestments, and the artificial lowering of the returns on savings, which eventually causes the malinvestments to be liquidated as they inevitably show their underlying unprofitability and unsustainability.
      
      Austrian economists therefore regard the state-sponsored central bank as the main cause of inflation, because it is the institution charged with the creation of new currency units, referred to as bank credit. When newly created bank credit is injected into the fractional-reserve banking system, the credit expands, thus enhancing the inflationary effect.
      
      Doesn't this look exactly like what is happening right now?

      (comment_max_expanded_depth : 2) (comment depth : 4) (recursion depth : 3) (max_comment_reply_depth : 40) (comment_max_render_depth : 3)

      Reply

      1 Reply

      loading ...
    • Neutral

      flyonthewallzz9 months, 2 weeks ago

      This comment is below the standard viewing threshold View It »

      This is a response to your first comment about #7).
      It is hard for me to get past my "conspiracy theory" thoughts......but I think there is a big difference between the Auto industry and bank bailout thing.
      They taste completely different to me.
      I was looking for the link to a chart from FDIC and could not find it..(nuts!) so I am going by faulty memory. There are about 6000 banks insured by FDIC...95% of them do not pay for the insurance...and 90% (close but not sure?) have assets less than $1 billion. Most banks have asset less than $100 million.
      What I can not figure out is why not just deposit money into the small banks and let the big inefficient ones go down. I get the impression that a few extra million in a small bank would open up credit to the businesses that need it.
      It would kind of be like a reverse treasury note.

      (comment_max_expanded_depth : 2) (comment depth : 4) (recursion depth : 3) (max_comment_reply_depth : 40) (comment_max_render_depth : 3)

      Reply

      3 Replies

      loading ...

• lovemorgulComment removed: Spammer, Hard Banned1 Reply

  • 100%

    populist9 months, 2 weeks ago

    This comment is below the standard viewing threshold View It »

    And this is really just the beginning.

    (comment_max_expanded_depth : 2) (comment depth : 3) (recursion depth : 2) (max_comment_reply_depth : 40) (comment_max_render_depth : 3)

    Reply

    0 Replies

    loading ...
• Neutral

  beavis6179 months, 2 weeks ago

  This comment is below the standard viewing threshold View It »

  I know that most of America is in love with whatever President Obama does just watch any tv cable/news outlet with the exception of Fox and Rush and Sean.The bashing of the republicans is there whenever there is a mention of tax cuts.I feel it's necessary to bring it up again.If the administration would have lowered payroll taxes or social security for at least six months and just let everyone have MORE money in their paycheck every week the economy would rebound quickly.But the democrats don't want that.They want the American people to be dependent on Government/the Democrats.This is going to backlash on the administration.How much more will they allow the Stock market to decline wiping out America's savings.Are we looking at another Jimmy Carter presidency.

  (comment_max_expanded_depth : 2) (comment depth : 2) (recursion depth : 1) (max_comment_reply_depth : 40) (comment_max_render_depth : 3)

  Reply

  0 Replies

  loading ...

View All 25 Comments

More News