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Jim Myrtle

Jim Myrtle
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  • The Teflon Market: When Will It Correct? [View article]
    "When the Fed creates additional money from thin air, SOMEONE gets this new money first"

    Yes, in my example, it was Goldman that sold a bond yielding 1.25% and now has cash yielding 0%. How is that a benefit to Goldman? How is it at the expense of "later receivers of the money"?

    "Whoever has the earliest access to the money can buy goods with it BEFORE their prices have risen due to the increase in money supply"

    Goldman didn't want goods, they wanted the 1.25% yield they had before.

    "He who spends money from thin air lays a claim to real goods while contributing nothing to the pool of real funding"

    In my example, at the same moment that Goldman sells their bonds to the Fed, another firm, say JPM, sells an identical chunk of bonds to another private buyer. Does JPM also unfairly benefit? How does the economy know that Goldman's claim is fake (even though they spent real money to buy the bonds in the first place) and JPM's claim is real?

    "The Fed's money supply inflation is fundamentally different , as the Fed need not acquire money to buy bonds by earning it. It simply creates it from thin air. I'm actually not sure why this seems so difficult to grasp"

    Not difficult to grasp at all. Still waiting for you to prove your claim...

    ""Inflation redistributes wealth to the first receivers of newly created money from the later receivers (who will have to pay higher prices, i.e. their savings will lose purchasing power)""
    Feb 22 06:18 PM | Likes Like |Link to Comment
  • The Teflon Market: When Will It Correct? [View article]
    Where did you go? You never did explain how the early receivers of new money from the Fed benefit at the expense of later receivers.
    How did Goldman profit at the expense of a later receiver?
    Does another firm that sells $1 billion in bonds to another financial firm at the exact instant as the Fed buys from Goldman also "benefit at the expense of later receivers"? After all, they also have $1 billion they didn't have before to lend out? Why does one seller unfairly benefit while the other does not?

    And one more thing, if the "early receiver" made a long term loan with the new money, aren't they going to lose when the inflation kicks in? After all, they're now being paid back with cheaper money
    Feb 19 10:32 PM | Likes Like |Link to Comment
  • The Inflationary Road to Perdition We're On, Part 2 [View article]
    "We can therefore see that credit and money are linked in a fractionally reserved system insofar as the extension of credit can lead to the creation of additional money, but nevertheless, money and credit are not literally the same thing. If John had deposited his money into a time deposit account for the duration of one year for the purpose of saving instead of into a checking account and Yellen Bank had thereafter lent this money to Sue, then the money supply would have remained unaltered as well"

    You are mistaken.
    Loans made from time deposits also increase the money supply.
    Feb 11 07:50 PM | 1 Like Like |Link to Comment
  • The Inflationary Road to Perdition We're On, Part 2 [View article]
    "The process is slightly more involved than that"

    No, it really isn't. Thanks for the articles, I'll check them out later.

    "So the first ones to profit are the banks. They now can lend out money they did not have before - "

    How does Goldman profit? They held a bond paying 1.25%, now they hold cash earning 0%. If they wanted to lend their money out, they could have sold the bond to someone else. So how does the Fed purchase, specifically, benefit Goldman?

    "and it came from thin air, one must always stress that"

    No argument there, it came from thin air.

    "Other participants in the economy do at that stage not yet realize that the money supply has increased"

    Well, the Fed does release their balance sheet every week, so technically, every participant will realize the money supply increased, within the week.

    "Note however that the initial receivers of the new money did not suffer the same drawback"

    The initial receiver, Goldman, did suffer a drawback, remember?

    "but the bottom line is that the earlier receivers gain to the detriment of the later receivers"

    Still not convinced. How did Goldman profit at the expense of a later receiver?
    Does another firm that sells $1 billion in bonds to another financial firm at the exact instant as the Fed buys from Goldman also "benefit at the expense of later receivers"? After all, they also have $1 billion they didn't have before to lend out? Why does one seller unfairly benefit while the other does not?

    And one more thing, if the "early receiver" made a long term loan with the new money, aren't they going to lose when the inflation kicks in? After all, they're now being paid back with cheaper money
    Feb 10 05:22 PM | 1 Like Like |Link to Comment
  • The Inflationary Road to Perdition We're On, Part 2 [View article]
    "Inflation redistributes wealth to the first receivers of newly created money from the later receivers (who will have to pay higher prices, i.e. their savings will lose purchasing power)"

    Goldman, for instance, holds $1 billion in 3 year Treasury notes yielding 1.25%. The Fed decides to create money out of thin air in exchange for Goldman's notes. Now the Fed holds $1 billion in 3 year Treasury notes, yield 1.25%, and Goldman holds a balance at the Fed of $1 billion, yield 0%.
    How is Goldman unfairly stealing wealth (as first receiver) from later receivers of this newly created money?
    Feb 9 06:26 PM | Likes Like |Link to Comment
  • JP Morgan and the Massive Silver Short: The Greatest Story Ever Told [View article]
    "Thank you! You just illustrated what lay beneath boom-bust ... virtual 'money'. "

    Yes, the same virtual money we had under a gold/silver standard.
    The same virtual money we have whenever we make a deposit and the bank loans out a fraction of our deposit.
    The modern (last 800 years or so) banking system doesn't go away when we have a new "poly-metallic based Free Market framework"

    "THIS is what you want for your progeny, Mr. Myrtle?"

    No, I do not want my progeny to be ignorant of economics and how money worked under the gold standard and how it works today.
    It's too late for you, obviously.
    Feb 8 01:24 PM | Likes Like |Link to Comment
  • JP Morgan and the Massive Silver Short: The Greatest Story Ever Told [View article]
    "Holy Cow! Alchemy! How do they get gold coins to reproduce? Magic?"

    Money supply is only coins? You have money in a checking account?
    Is it still money?
    Feb 7 11:47 PM | Likes Like |Link to Comment
  • JP Morgan and the Massive Silver Short: The Greatest Story Ever Told [View article]
    "A poly-metallic based Free Market framework isn’t intrinsically competitive any more than copper-nickel alloy dimes as juxtaposed to copper plated zinc pennies"

    The problem with your claim is that the ratio of 10 zinc pennies to 1 copper-nickel dime is constant, but the ratio between silver, gold, copper and whatever other metals you want to use constantly flucuates.

    "Explain how properly judicious lending of a finite quantity of coin causes boom and bust"

    Do you really not understand how banking works? If you deposit 10 gold coins in the bank and they lend out 9, the money supply just increased by 9 gold coins.

    "If interest bearing Loan itself is relegated back to marginal usage, as it was during free market clearing in self-extinguishing Real Bill finance for the bulk of production, then … yes … there won’t be a propensity for boom and bust to develop in any but highly localized instances"

    You're speaking in gibberish.

    "Look into Professor Antal Fekete's writings"

    That explains your gibberish. Fekete is hilarious.
    Feb 6 05:44 PM | Likes Like |Link to Comment
  • JP Morgan and the Massive Silver Short: The Greatest Story Ever Told [View article]
    "I propound a poly-metallic based Free Market framework"

    So we'll have several different competing currencies circulating at the same time? All goods will be priced in several currancies at the same time? We'll have a separate bank account for each currency? We'll be paid in one and some of our expenses will be in another?

    "The poly-metallic scheme intrinsically provides a share of economic empowerment, mobility and Liberty to each level of strata in society and concurrently institutes an inter-dependency, where manipulation of any one of the metals becomes self-defeating to the interests of the others"

    Dude!

    "It is unsubstantiated, fiat 'Loan' credit that causes booms and busts in economies"

    We had gold and silver credit that caused booms and busts in our economy.

    "Moreover, interest on fiat 'Loan' debilitates circulation of media which gradually diminishes a society's capacity to trade at its full potential"

    There won't be interest under "a poly-metallic based Free Market framework"? There wasn't interest under a system of gold and silver loans back in the day?
    Feb 5 03:48 PM | Likes Like |Link to Comment
  • JP Morgan and the Massive Silver Short: The Greatest Story Ever Told [View article]
    The gold standard didn't prevent booms and busts in the past. Why do you feel a new gold standard would work any better?

    People are free to extend to much credit, no matter what type of money we use. You don't want to limit credit by government diktat, do you?
    Feb 3 12:44 PM | 2 Likes Like |Link to Comment
  • JP Morgan and the Massive Silver Short: The Greatest Story Ever Told [View article]
    You feel there was no mal-investment, no booms and busts, during our time on the gold standard in the US?

    "The mal-investment borne of nefariously contrived money expansion, leading entrepeneurs to misconstrue the actual nature of economic expansion (ultimately negated by the resulting price-inflation), can occur in a metallic money system (by debasement)"

    Huh? When did we have debasement in the US under the gold standard, prior to FDR?
    Feb 2 06:37 PM | Likes Like |Link to Comment
  • JP Morgan and the Massive Silver Short: The Greatest Story Ever Told [View article]
    "Metallic money in co-ordination with an uncontrolled free market is the only proven method of economic operation to prevent that 'mal-investment' from taking form"

    You feel there was no mal-investment, no booms and busts, during our time on the gold standard in the US?
    Feb 1 08:33 AM | 2 Likes Like |Link to Comment
  • Consumer Price Index: Headline Inflation Is Hotter, But Core Remains Well Below Fed's 2% Target [View article]
    "I tend to believe the shadowstats numbers more accurately reflect the rate of inflation. By utilizing the old methods of accounting"

    Shadowstats doesn't use the old methods.
    He collects no data of his own.
    Jan 16 05:13 PM | Likes Like |Link to Comment
  • China Lights, Global Floods, Australian Coal [View article]
    No, travel from northern Europe to Greenland would have nothing to do with the Northwest Passage, but maybe, when Greenland was that much warmer, the Northwest Passage would have been open as well. Don't you think?
    Of course if you think the weather is warmer now than it's ever been, the answer is you don't think. At least not very well.
    Jan 7 05:02 PM | 1 Like Like |Link to Comment
  • China Lights, Global Floods, Australian Coal [View article]
    "The fact that the polar ice caps are melting at an alarming rate, rising seas, and forget that the fabled Northwest passage not all that long ago opened up for the first time in human history"

    And don't forget the Vikings used to have settlements in Greenland 1000 years ago during the MWP. I wonder if the Northwest Passage was open then?

    "but the masses have declared that they don't want global warming and thus is doesn't exist"

    Maybe the masses saw the emails about hiding the decline?
    Jan 7 10:07 AM | Likes Like |Link to Comment
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