KatyDee

8 Comments

    • Death of a Business Model: NetBank [view article]
      I find it amazing this business model would not be even more efficient that the classic one. Can someone explain how the absence of commercial space rent and of employee expenses can be a handicap? Where, then, do the outlays lie? Oct 02 04:09 PM
    • Death of a Business Model: NetBank [view article]
      I find it amazing this business model would not be even more efficient that the classic one. Can someone explain how the absence of commercial space rent and of employee expenses can be a handicap? Where, then, do the outlays lie? Oct 02 04:09 PM
    • Is the US Printing Money Like Mad? [view article]
      Okay I agree, this may not be Weimar; but one thing you don't mention: Money supply isn't an abstract phenomenon; it evolves out of an economy. In other words, without central bank intervention, it would evolve out of and be closely related to something in the economy, let's say GDP plus stable credit ratios (you might find that better than me).

      What if, without the Fed, the economy would have created less money supply, but the figure the central bank was targeting, even though not high in the abstract, was above that need? You might not get Weimar, but you'd still have an inflationary scenario that wouldn't appear on your anyone's radar screen.

      In other words, inflationary purchasing media is created when the money supply is excessive relative to production (or some such factor). You cannot look only at money supply in a vacuum, and make any interpretation about whether it's appropriate, excessive, or insufficient.

      The same principle applies to the CPI. Prices might even remain stable (which they are not) or be falling; but even stable or falling they might be inflationary compared to what they should be. For example, technology and productivity advancements should decrease our CPI, but we don't know by how much. If that figure is high, then even 2 percent CPI increase could represent 5 percent inflation in the true sense of the term, i.e. inflationary purchasing media in circulation.
       Sep 18 02:52 PM
    • Gold's Value In the 21st Century: About As Real As the Myth of El Dorado [view article]
      I agree with Scotty295 and NiravDesai. And to answer Matt's query "What am I missing?", I will simply reinterate my mantra:

      "You can take gold out of the standard, but you can't take the standard out of gold." - Katy Delay

      In other words, gold may not be the official standard bearer in the eyes of the central bankers, but it will always be so for the people. And that's just the way it is, folks.       Aug 19 06:18 PM
    • A Tale of 2 Inflation Rates [view article]
      I like the article. I also think it is important to point out to readers that the word "inflation" is confusing because it's used by many people--laypersons and economic academicians alike--to mean one or both of two distinct phenomena: (1) price increases, no matter what the cause; and (2) general or specific price increases caused by an excess of purchasing media.

      The public is concerned with (1). The Federal Reserve board members are concerned with both (1) and (2), but mainly with (2), because they believe they control the supply of purchasing media and prefer core numbers because these do not include price increases caused by factors outside the Fed's "control." (Whether their efforts to control the money supply are efficacious or deleterious is a discussion for another day.)

      The market is concerned with both, because players are in the business of making money, which business depends on what both the public and the Fed board members do.

      Economists would do well to invent another word for either (1) or (2) so as to be more clear. Their semantic slight-of-tongue makes one wonder just what their real intent is, i.e. whether it is to clarify or to confuse. Surely they know the difference... don't they?       Jun 17 05:11 PM
    • The Top-Line and the Core CPI: A Tale of Two Inflations [view article]
      See comment below. Jun 17 04:01 PM
    • The Top-Line and the Core CPI: A Tale of Two Inflations [view article]
      Both Picerno and sbh_home have great points. I would like to get a better grasp of sbh_home's ideas on this subject. Do you have a blog or website? Jun 17 04:00 PM
    • Where's the Inflation? Check the Non-Core Components of the PPI and CPI [view article]
      I disagree. Please see my own post at:

      sybilstar.blogspot.com...

      To raise or lower rates now would be a catastrophe. See my reasoning at the above link.       May 15 03:05 PM
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