Jim Myrtle

Jim Myrtle
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  • I Was Asked: Whatever Happened To Inflation After All This Money-Printing?  [View article]
    ron,

    "An increase of 65% over the last 7 years. That's not much?"

    That's 7.42% a year.

    "Look at the rate of increase over the years"

    Go ahead. Jason did, as he said.
    "At the end of 1960 the M2 money supply was $312.4 billion. The average annual rate of growth of M2 over the whole period 1960 to 2010 was therefore 6.89%"

    6.89% vs 7.42%

    "And why shouldn't the monetary base be used?"

    Why should you look at the big picture, instead of a smaller part? Accuracy?
    Honesty?
    More info is better than less? Take your pick or come up with another.
    Dec 31, 2015. 07:18 PM | 1 Like Like |Link to Comment
  • I Was Asked: Whatever Happened To Inflation After All This Money-Printing?  [View article]
    Ron,

    "How much did the broad money supply increase in the last 5 years? Note, broad, the whole thing, not the monetary base"

    Jason clearly said to look at broad money, not the monetary base.
    Dec 31, 2015. 05:23 PM | 1 Like Like |Link to Comment
  • I Was Asked: Whatever Happened To Inflation After All This Money-Printing?  [View article]
    nhs88

    "By maintaining a rate higher than the over night funds rate thereby keeping a lid on liquidity"

    My take on this is it removes the incentive for banks to lend in the FF market, driving the rate below the target rate.
    If would not remove the incentive for a bank to make an auto or home loan (or any loan) that would earn much more than 0.50%. IMO
    Dec 31, 2015. 01:09 PM | Likes Like |Link to Comment
  • I Was Asked: Whatever Happened To Inflation After All This Money-Printing?  [View article]
    John,
    "The problem with your argument is that you believe that the loan borrower will just take his loan proceeds to another bank and not spend it. The funds WILL get spent and the economy will get a boost"

    Where does the money go after it is spent? Into a bank.
    So much for sterilization.
    Dec 31, 2015. 01:04 PM | 2 Likes Like |Link to Comment
  • I Was Asked: Whatever Happened To Inflation After All This Money-Printing?  [View article]
    nhs88
    http://tinyurl.com/j8e...
    Dec 30, 2015. 10:57 PM | Likes Like |Link to Comment
  • I Was Asked: Whatever Happened To Inflation After All This Money-Printing?  [View article]
    "I'm waiting to learn about how all the bailouts of GM, brokerages and banks helped the poor and unemployed in America. etc."

    First, you could read about how the massive bank failures in the 1930s helped the poor and unemployed in America. Oh, wait, they didn't.
    Dec 30, 2015. 02:49 PM | 4 Likes Like |Link to Comment
  • I Was Asked: Whatever Happened To Inflation After All This Money-Printing?  [View article]
    "To sterilize the vast sums of money that would otherwise circulate throughout the economy and cause price inflation, the Fed pays an above-market interest rate of 0.50% to banks on reserves, or digital cash, held at the Fed"

    Yes, the author's claim is wrong.
    Dec 30, 2015. 11:17 AM | 1 Like Like |Link to Comment
  • I Was Asked: Whatever Happened To Inflation After All This Money-Printing?  [View article]
    "If you are a bank and the Fed buys bonds from you, you are borrowing money from the Fed"

    In your example, the bank is an asset seller, not a borrower.

    During the early part of the crisis, the banks did pledge assets to the Fed to borrow money.
    Dec 29, 2015. 05:10 PM | 1 Like Like |Link to Comment
  • I Was Asked: Whatever Happened To Inflation After All This Money-Printing?  [View article]
    ron_paulite

    "The Fed, having gone on an unprecedented credit expansion spree, has benefited the recipients who were first in line at the trough: banks (imagine borrowing for free"

    Banks aren't borrowing from the Fed, let alone for free. They're currently lending the Fed nearly $2.4 trillion in excess reserves.
    Dec 29, 2015. 03:56 PM | 1 Like Like |Link to Comment
  • I Was Asked: Whatever Happened To Inflation After All This Money-Printing?  [View article]
    "There is no problem with the claim, because as you point out, the money is still at a bank drawing interest from the fed for holding it out of the market and keeping a lid on inflation...."

    The fed payment for "holding it out of the economy" doesn't hold it out of the economy. If the Fed's payment is the same, whether you lend or not, how does it reduce lending?
    Dec 29, 2015. 12:52 PM | 1 Like Like |Link to Comment
  • I Was Asked: Whatever Happened To Inflation After All This Money-Printing?  [View article]
    nhsully

    "Perhaps there is another answer to why the doubling of liquidity hasn't caused inflation - the fed is paying the major banks not to release the funds"

    The problem with this claim is that lending does not reduce reserves in the banking system. If banks lent the $2.5 trillion, tomorrow, that money would land at another bank which would then get paid to "keep the money out of the economy".
    Dec 29, 2015. 11:09 AM | 1 Like Like |Link to Comment
  • Something Is Still Ridiculously Wrong  [View article]
    SV,

    If I throw a couple of trillion dollars at it, will the train come back?

    How much money did Obama promise to send to 3rd World nations at that Paris summit? How much cooling will that spending give us?

    Be as precise as you can.
    Dec 28, 2015. 04:20 PM | Likes Like |Link to Comment
  • Something Is Still Ridiculously Wrong  [View article]
    If seat belts cost trillions of dollars and didn't save a single life, then you could compare them to climate change.

    I wonder if that stance on climate change gets the Pentagon more money to spend? Hmmmmmm.

    You realize that Buffet could be the best investor in history, while still being a liar, right?
    Dec 27, 2015. 09:05 PM | Likes Like |Link to Comment
  • Something Is Still Ridiculously Wrong  [View article]
    "No, but Warren Buffet certainly does. Why don't you take it up with him?"

    Because he's a liar and wouldn't answer.
    Dec 27, 2015. 02:49 PM | 2 Likes Like |Link to Comment
  • Russian Roulette: Taxpayers Could Be On The Hook For Trillions In Oil Derivatives  [View article]
    Yes, bondholders are losing money. The hyperventilating here was about oil derivatives.
    Dec 27, 2015. 11:24 AM | Likes Like |Link to Comment
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