Prev: The Rule of law doesn't apply.
Next: Posts with threaded holes
From: dagmargoodboat on 27 May 2010 20:44
On May 26, 10:00 pm, Greegor <greego...(a)gmail.com> wrote:
> On May 26, 8:09 pm, John Larkin
>
> <jjlar...(a)highNOTlandTHIStechnologyPART.com> wrote:
> >http://www.telegraph.co.uk/finance/economics/7769126/US-money-supply-...
>
> > John
>
> Is money going to collapse?
>
> http://www.telegraph.co.uk/finance/economics/7769126/US-money-supply-...
>
> US money supply plunges at 1930s pace as Obama eyes fresh stimulus
> The M3 money supply in the United States is contracting at an
> accelerating rate that now matches the average decline seen from 1929
> to 1933, despite near zero interest rates and the biggest fiscal blitz
> in history.
>
> By Ambrose Evans-Pritchard  Published: 9:40PM BST 26 May 2010

<big snip>


> Events may soon tell us whether this is benign or malign. It is
> certainly remarkable.

The Fed operates in shadowy ways I don't fully understand yet. I
don't think they do either.

Anyway, early in the crisis they quit reporting the M3 money supply to
make it harder to figure out what they're up to. Now they only report
M1 and M2:

http://www.federalreserve.gov/releases/h6/current/

They've dumped money--trillions--seemingly from nowhere, with the idea
they can snatch it back before it spawns hyperinflation. Maybe
they're doing that. Who knows?

That article references shadowstats.com. Don't go there--you'll have
nightmares. Don't watch that guy's YouTubes either, same reason.

--
Cheers,
James Arthur
From: JosephKK on 5 Jun 2010 17:02
On Fri, 28 May 2010 08:16:52 +1000, Adrian Jansen <adrian(a)qq.vv.net>
wrote:

>
>John Larkin wrote:
>> http://www.telegraph.co.uk/finance/economics/7769126/US-money-supply-plunges-at-1930s-pace-as-Obama-eyes-fresh-stimulus.html
>>
>>
>> John
>>
>Maybe if economists were given a course in feedback theory, like
>engineers get, then some of the problems might be corrected.

Naw, those ivory tower types cannot learn from reality.
Plus they are much too interested developing theory to make weird
financial instruments look good.
From: John Larkin on 5 Jun 2010 17:28
On Fri, 28 May 2010 08:16:52 +1000, Adrian Jansen <adrian(a)qq.vv.net>
wrote:

>
>John Larkin wrote:
>> http://www.telegraph.co.uk/finance/economics/7769126/US-money-supply-plunges-at-1930s-pace-as-Obama-eyes-fresh-stimulus.html
>>
>>
>> John
>>
>Maybe if economists were given a course in feedback theory, like
>engineers get, then some of the problems might be corrected.

And basic conservation theories. I never understood how "consumer
spending drives two thirds of the economy." All we need to do to
prosper is whip out our credit cards and buy a lot of consumer junk
from China?

John

From: Robert Baer on 6 Jun 2010 03:19
John Larkin wrote:
> On Fri, 28 May 2010 08:16:52 +1000, Adrian Jansen <adrian(a)qq.vv.net>
> wrote:
>
>> John Larkin wrote:
>>> http://www.telegraph.co.uk/finance/economics/7769126/US-money-supply-plunges-at-1930s-pace-as-Obama-eyes-fresh-stimulus.html
>>>
>>>
>>> John
>>>
>> Maybe if economists were given a course in feedback theory, like
>> engineers get, then some of the problems might be corrected.
>
> And basic conservation theories. I never understood how "consumer
> spending drives two thirds of the economy." All we need to do to
> prosper is whip out our credit cards and buy a lot of consumer junk
> from China?
>
> John
>
Absolutely..also print all the money that the presses can handle...
From: dagmargoodboat on 6 Jun 2010 10:02
On Jun 5, 4:28 pm, John Larkin
<jjlar...(a)highNOTlandTHIStechnologyPART.com> wrote:
> On Fri, 28 May 2010 08:16:52 +1000, Adrian Jansen <adr...(a)qq.vv.net>
> wrote:
>
>
>
> >John Larkin wrote:
> >>http://www.telegraph.co.uk/finance/economics/7769126/US-money-supply-....
>
> >> John
>
> >Maybe if economists were given a course in feedback theory, like
> >engineers get, then some of the problems might be corrected.
>
> And basic conservation theories. I never understood how "consumer
> spending drives two thirds of the economy." All we need to do to
> prosper is whip out our credit cards and buy a lot of consumer junk
> from China?
>
> John

Easy. 2/3rds of the GDP the government takes credit for tallies up the
things regular people buy, and all the manufacturing and retail
activity that spurs.

They don't care where the money comes from, whether it's your money or
borrowed, or whether you're buying anything useful, so yeah, do your
part: whip out your card and buy tulips on credit. Preferably more
than you can afford.

Or flood your house then rebuild it. That'll jack up GDP too.

If you're Obama, you can hire a bunch of Census workers and have them
run around in circles. (Government activity doesn't count in GDP, but
they count it indirectly (the "multiplier" notion) as stimulating
other private enterprise. Namely, Census workers spending their
paychecks.) It's the broken window fallacy, yet again.

For that matter AGW's a boon--Al Gore's great for GDP.

--
Cheers,
James Arthur
First  |  Prev  |  Next  |  Last
Pages: 1 2 3
Prev: The Rule of law doesn't apply.
Next: Posts with threaded holes