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  • Summary Of My Post-CPI Thoughts [View article]
    From the FOMC minutes...

    “Most participants anticipated that, based on their assessment of the current economic situation and their outlook for economic activity, the labor market, and inflation, these conditions could well be met by the time of the next meeting.”

    “In its postmeeting statement, rather than framing its near-term policy path in terms of how long to maintain the current target range, the Committee decided to indicate that, in determining whether it would be appropriate to raise the target range at its next meeting, it would assess both realized and expected progress toward its objectives of maximum employment and 2 percent inflation. Members emphasized that this change was intended to convey the sense that, while no decision had been made, it may well become appropriate to initiate the normalization process at the next meeting, provided that unanticipated shocks do not adversely affect the economic outlook and that incoming data support the expectation that labor market conditions will continue to improve and that inflation will return to the Committee’s 2 percent objective over the medium term.”

    Remember, an increase in the DR adds to the bias for risk-off.
    Nov 19, 2015. 08:48 AM | Likes Like |Link to Comment
  • Why Not Just Print More Money? [View article]
    Wait, are you seriously trying to claim that the gov doesn't have the option of force? Do you really think the IRS can't use force to make people cough up their Fed notes to the US Treas?
    Nov 18, 2015. 07:04 PM | 2 Likes Like |Link to Comment
  • Why Not Just Print More Money? [View article]
    The guns don't need to be in Hawaii to coerce your fellow citizens. You're not exactly claiming the moral high ground when you have to coerce your fellow citizens for the loans. If they would have done it voluntarily, you wouldn't have needed the gov and ITS guns to get the money. If its voluntary you don't need to trap them. So much for helping them, you need gov to keep them from running away. You guys have done this before.

    If you want to show how moral you are, maybe you should just ask for your next set of loans instead of using gov force to coerce others into them.
    Nov 18, 2015. 05:18 PM | 1 Like Like |Link to Comment
  • Why Not Just Print More Money? [View article]
    "This moolah was a loan from Uncle Sam for infrastructure."

    You mean a subsidized loan obtained at the point of a gun from your fellow citizens in other states, which is another way of saying forcing other people to work for your benefit, which is another way of saying slave.
    Nov 18, 2015. 04:54 PM | 1 Like Like |Link to Comment
  • Why Not Just Print More Money? [View article]
    "other than as a prudential regulator"

    Prudent? Why not just say perfect? We were promised by the people that created these vaunted regulators that they would stop all financial disasters. Its easy to promise, but difficult to deliver. So let's be honest. The jobs of regulators is to get rid of private enterprise and thus new competitors to ensure the rich get richer and the poor get poorer.
    Nov 18, 2015. 04:19 PM | 2 Likes Like |Link to Comment
  • Why Not Just Print More Money? [View article]
    "govt cannot actually print money in the manner being discussed."

    Which again, doesn't really matter. If your right hand or left hand can create notes, but not assets, it doesn't matter how the ratio of assets to notes is changed. What matters is that it is. All this hair splitting is just a distraction, which is actually the real point here. Its an intimidation technique to say, "see all you knuckle draggers don't really know how religion works, so you should just stop picking at it."
    Nov 18, 2015. 04:09 PM | 2 Likes Like |Link to Comment
  • Why Not Just Print More Money? [View article]
    The politicians would love this. Talk about a great slush fund to reward political favors and campaign contributions. Not to mention a perpetual revolving door (like Goldman) between DC politicians their friends and employees who move between the bank and payoffs and political office.
    Nov 18, 2015. 03:04 PM | Likes Like |Link to Comment
  • Summary Of My Post-CPI Thoughts [View article]
    "which it created in the first place, of course). "

    Brilliant. How few people understand this.
    Nov 18, 2015. 02:55 PM | Likes Like |Link to Comment
  • Summary Of My Post-CPI Thoughts [View article]
    "by attempting to raise rates and then looking dumb when they are cut immediately back to zero"

    The other thought is that they will raise the DR and then engage in more QE later in 2016 when the ECB ends their QE.
    Nov 18, 2015. 02:55 PM | Likes Like |Link to Comment
  • Tragedy In Paris: The People And Markets Will Overcome [View article]
    Don't forget the Keynesians and their fundamentalist dogma and lack of empirical evidence.
    Nov 18, 2015. 02:53 PM | 2 Likes Like |Link to Comment
  • Why Not Just Print More Money? [View article]
    "Didn't Private Entrprise "

    What private enterprise? All enterprise is heavily controlled by gov. A private enterprise system would have no gov involvement in any pricing decision. All gov would do is regulate with regards to force, since all we can grant gov is force. We cannot grant gov price knowledge that no one currently has.

    What we have is a protectionist system. The point of that is to protect existing wealth from competition. That's why the number of banks keeps falling, for example. That's why we have an income tax system. That's why we have an alphabet soup of regulatory agencies, which requires the suspension of the bill of rights.

    So, private enterprise doesn't exist, thus you can't blame what doesn't exist.
    Nov 18, 2015. 02:51 PM | 4 Likes Like |Link to Comment
  • Why Not Just Print More Money? [View article]
    If you really want to put money in the economy, just get rid of the income tax. All the IRS does is just "cancel" Fed notes. Granted, Treas notes will go up, but people can stop wasting their time in compliance with an idiotic tax code and turn that time to productivity. That means more asset creation will occur, which will stabilize the ratio of asset to notes. So even though the "deficit and debt" will go up, so will asset creation. That will generate demand for US notes and thus keep inflation and interest rates tame.

    Remember, high interest rates are a sign that something is wrong. They are not a sign of a healthy economy.
    Nov 18, 2015. 02:41 PM | 3 Likes Like |Link to Comment
  • Why Not Just Print More Money? [View article]
    "The term "printing money" is highly misleading."

    And so are the people that try to make this difference that doesn't really have a distinction. Whether the Fed electronically debits and credits its balance sheet, the Treas actually orders up a bunch of paper notes from the Fed, or a bunch of 10 yr notes are issued, the reality is that more notes have been issued on the right side of the balance sheet without a corresponding increase of assets on the left side. On a completely consolidated basis, Fed notes are on the right side of the balance sheet along with treas notes. Only real consumable assets, like land or inventory, would be on the left, on a completely consolidated basis mind you.

    In other words, all you have are additional claims on the same amount of assets. Its like a corporation issuing more stock, and claiming it has doubled its size. All that matters is real productivity and increases in real productivity. Printing up a bunch of notes only distorts the ratio of notes to assets. The price of assets only appear higher. This is known as an inflationary consumption binge. People accelerate the consumption of assets via subsidies (like money medium printing - you actually can't print money because you can't print assets), which discourages advances in productivity (why increase technology to lower prices to attract customers when people they are lined up at your door with newly printed money mediums).

    The consumption binge is the boom period. Once the assets are consumed, you have a credit to the left side of your balance sheet. The corresponding debit is to you equity section (which is basically the "note" side or the right side). That means your balance sheet shrinks, or recedes, and hence recession.

    Thus, the way to play a consumption binge/boom, is to buy equities just before the printing. When corporate earnings get inflated, equity prices and bond yields will jump, and so will your net worth. When the boom is over and the balance sheet is forced to shrink, you will want to move to the higher yielding bonds just before the bust (ie just at the peak of the gov subsidies via printing). [We see this during QE periods, though other factors can mitigate it, like tax or regulatory increases].

    When the bust comes people will flee to safety. Equities will fall and so will interest rates. Then your bonds will have gains. Then, when it appears the next consumption binge is on the horizon (ie more printing, infrastructure, or war), sell you bonds for gains and put the cash back in equities waiting for the cycle to repeat.

    The result of this is that the average citizen will get poorer and poorer, and people connected to the gov and financial markets and politically protected businesses will get richer and richer. Money printing is just wealth transfer from the general populace to the protected classes. What you have to do is get in those protected classes via the process I outlined above, and you too will benefit by having the wealth transferred your way.
    Nov 18, 2015. 02:33 PM | 7 Likes Like |Link to Comment
  • Why Not Just Print More Money? [View article]
    "A government could, for instance, pay $1000 to all citizens by electronic transfer to their commercial bank deposit accounts,"

    This was basically done in 2008. It successfully averted a recession.

    "several kinds of economic stimuli intended to boost the United States economy in 2008 and to avert a recession"
    Nov 18, 2015. 12:36 PM | 3 Likes Like |Link to Comment
  • Summary Of My Post-CPI Thoughts [View article]
    A central bank that tried to lift its rates, but had to drop them back (and into negative territory).
    Nov 18, 2015. 12:27 PM | Likes Like |Link to Comment