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Jim Myrtle

Jim Myrtle
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  • Something Is Still Ridiculously Wrong [View article]
    "Why won't the Fed dispose of it's treasury holdings by selling them in the open market today? Answer: because it's contractionary"

    Okay.

    "If they can't sell them now"

    They can sell then now, as you admitted above. They don't wish to sell them now.

    "then what's going to happen when time comes that they mature?"

    When they mature the Fed will either buy the same amount, buy a smaller amount or buy nothing.

    "Answer: Oh, the principle will be repaid by the Treasury and they will evaporate"

    Yes, if they don't buy more, the principle will cease to exist and the money supply will decrease by that amount.

    "Follow on question: Where does the Treasury get the money to pay the Fed off at maturity? Answer: Oh, they will just issue new treasuries"

    Yes. Or, heaven forbid, they will pay them off with reduced spending on other things.

    "Really?"

    Truly.

    "How will they just issue new treasuries then, taking money out of the system and not have it be contractionary....then?"

    It will be contractionary. Who ever said it would not be contractionary?
    That's kind of the entire point behind shrinking the spreadsheet, if they ever do, to take a contractionary course of action.
    Aug 28, 2015. 05:26 PM | 1 Like Like |Link to Comment
  • Something Is Still Ridiculously Wrong [View article]
    "Thanks Jim. Non-responsive"

    Anytime. So are the Treasury auctions going to fail from lack of "idle cash"?
    Any time frame on their upcoming failures?
    Aug 27, 2015. 09:53 PM | Likes Like |Link to Comment
  • Something Is Still Ridiculously Wrong [View article]
    Doomer fear mongering is funny.
    Especially when their math is so incredibly wrong.
    Aug 23, 2015. 12:40 PM | 2 Likes Like |Link to Comment
  • Something Is Still Ridiculously Wrong [View article]
    Thanks Jason.
    Aug 23, 2015. 12:38 PM | Likes Like |Link to Comment
  • Something Is Still Ridiculously Wrong [View article]
    "It doesn't matter- we NEVER "repay" any debt"

    It does matter. If rates increase by 1%, but we only have to refinance
    $1 billion, that only costs us an additional $10 million/year.
    If $18 trillion has to be refinanced, that would be an extra $180 billion/year.

    Do you see how it matters now?
    Aug 23, 2015. 12:36 PM | Likes Like |Link to Comment
  • Something Is Still Ridiculously Wrong [View article]
    "As US debt begins to come due in 2017, we will not be able to afford to cover the interest payments to roll it over at increased rates"

    How much debt comes due in 2017?
    Aug 22, 2015. 06:32 PM | Likes Like |Link to Comment
  • Something Is Still Ridiculously Wrong [View article]
    ""...if Walmart stopped hiring poor people", what would happen to their profit margin, and would the Walton family remain the "richest family" in America?"

    I'm not interested in the impact on their profit margin, just the impact on government payments for healthcare, food stamps and subsidized housing.
    Aug 19, 2015. 01:28 PM | 1 Like Like |Link to Comment
  • Something Is Still Ridiculously Wrong [View article]
    "thank you, 427, accidental, and American taxpayers for your fealty and willingness to pay for their employees health care, food stamps, and subsidized housing"

    All those payments would be higher or lower if WalMart stopped hiring poor people?
    Aug 19, 2015. 11:01 AM | 2 Likes Like |Link to Comment
  • Something Is Still Ridiculously Wrong [View article]
    "Why don't idle cash holders buy Treasuries today?"

    Maybe they're waiting for higher rates tomorrow?
    Maybe they want to hold cash now?
    Maybe they need to hold cash now?
    Maybe they'll use money they'll earn between now and then?
    The Fed stopped adding to their balance sheet last October.
    Have auctions continued to be oversubscribed?
    Have rates suddenly jumped since the Fed stopped buying?

    "And why doesn't the Fed sell their holdings TODAY?"

    Why don't you sell your holdings today?
    Aug 18, 2015. 10:35 PM | Likes Like |Link to Comment
  • Something Is Still Ridiculously Wrong [View article]
    "What's the inducement to invest idle cash in something they can buy today?"

    Something called interest.

    "Why is the cash idle today, but available to refi treasuries when the time comes?"

    You feel there is a lack of cash out there?
    Aug 17, 2015. 10:37 PM | Likes Like |Link to Comment
  • Something Is Still Ridiculously Wrong [View article]
    "What is the thing with the gov't deciding to cut a percentage of SSA disability benefits"

    It's called math.
    Money in the trust fund + interest earned by the trust fund=money available to pay benefits.
    Aug 16, 2015. 12:48 PM | Likes Like |Link to Comment
  • Something Is Still Ridiculously Wrong [View article]
    "This is a larger effect than the difference a degree or two makes in the solubility of gases"

    That's a bold claim.
    Aug 16, 2015. 02:41 AM | Likes Like |Link to Comment
  • Something Is Still Ridiculously Wrong [View article]
    "It's been proven that the ocean is acting as a heat sink and is warming below the surface, causing acidification"

    Warming causes acidification? I always thought it reduced the amount of carbon dioxide dissolved in the water and reduced acid levels.
    Aug 15, 2015. 08:14 PM | Likes Like |Link to Comment
  • Something Is Still Ridiculously Wrong [View article]
    "And I might note that a 5 to 10 year doubling of the current acceleration rate for sea level rise puts that 10' projection under water as well, and leads us to a 70' rise this century"

    Sea levels will rise 70 feet this century? LOL! That's funny.
    Aug 15, 2015. 12:29 PM | 1 Like Like |Link to Comment
  • Something Is Still Ridiculously Wrong [View article]
    "The government (FED) stepped into the breach and created the money to lend to the $ consuming government"

    Yes, the Fed bought Treasuries.

    "The question still stands. Where's the money going to come from? The private sector?"

    Yes.

    "At what interest rate?"

    Currently, 2.2% on the 10 year, 2.85% on the 30 year.

    "If it comes out of the (woodwork?) to purchase treasuries - what gets sold to generate the cash?"

    Ummmmmm....how does selling something "generate" cash?

    "Does it come out of "idle" cash? Don't think so"

    Why can't it come out of idle cash?
    Aug 14, 2015. 11:42 AM | 1 Like Like |Link to Comment
COMMENTS STATS
1,175 Comments
814 Likes