H8tank Posted February 2, 2009 Share Posted February 2, 2009 Hockey Stick. Quote Link to comment Share on other sites More sharing options...
wiegie Posted February 2, 2009 Share Posted February 2, 2009 Glenn Beck understands neither the money multiplier process nor the difference between the monetary base and the money supply. Quote Link to comment Share on other sites More sharing options...
Jimmy Neutron Posted February 3, 2009 Share Posted February 3, 2009 Glenn Beck understands neither the money multiplier process nor the difference between the monetary base and the money supply. Are you saying there will be no repercussions on the value of our currency? Quote Link to comment Share on other sites More sharing options...
bushwacked Posted February 3, 2009 Share Posted February 3, 2009 Hockey Stick. For all of his dramatics, it would have been nice if he explained why this will devalue our currency. Quote Link to comment Share on other sites More sharing options...
wiegie Posted February 3, 2009 Share Posted February 3, 2009 Are you saying there will be no repercussions on the value of our currency? there will be some repercussions, but nearly like what Glenn Beck is babbling on about. If you actually look at a measure of the overall money supply (link) you won't see such a hugh spike. Yes, the Fed is trying to flood the financial system with cash right now, but it's not translating into a big increase in the total money supply because banks aren't lending as much and borrowers aren't borrowing as much. This causes the money multiplier to be smaller than normal so that increases in cash aren't translating into a big increase in the actual amount of purchasing power in the economy--hence prices are not being forced up. When the banking system and economy returns to normal, this increase in cash will cause a lot of inflation EXCEPT that, in my opinion, the Fed is going to not let this happen. Instead, as the economy turns around, it will pull cash back out of the economy, thereby limiting inflationary pressures. Am I right? I don't know. But it is what I think is going to happen. Quote Link to comment Share on other sites More sharing options...
Jimmy Neutron Posted February 3, 2009 Share Posted February 3, 2009 there will be some repercussions, but nearly like what Glenn Beck is babbling on about. If you actually look at a measure of the overall money supply (link) you won't see such a hugh spike. Yes, the Fed is trying to flood the financial system with cash right now, but it's not translating into a big increase in the total money supply because banks aren't lending as much and borrowers aren't borrowing as much. This causes the money multiplier to be smaller than normal so that increases in cash aren't translating into a big increase in the actual amount of purchasing power in the economy--hence prices are not being forced up. When the banking system and economy returns to normal, this increase in cash will cause a lot of inflation EXCEPT that, in my opinion, the Fed is going to not let this happen. Instead, as the economy turns around, it will pull cash back out of the economy, thereby limiting inflationary pressures. Am I right? I don't know. But it is what I think is going to happen. I hope you're right. Quote Link to comment Share on other sites More sharing options...
H8tank Posted February 4, 2009 Author Share Posted February 4, 2009 Glenn Beck understands neither the money multiplier process nor the difference between the monetary base and the money supply. This person disagrees. Of course, he is right on. The printing presses have been running around the clock and it doesn't take a rocket scientist to see that inflation is coming on the heels of the increased amount of money circulating. Wealth is not created by the movement of money from one to another. That is nothing more than the redistribuion of existing wealth. It is created when the money is converted to products. So, I wonder who is right? Quote Link to comment Share on other sites More sharing options...
cre8tiff Posted February 4, 2009 Share Posted February 4, 2009 This person disagrees. So, I wonder who is right? Regardless, we will always know it isn't you. Quote Link to comment Share on other sites More sharing options...
H8tank Posted February 4, 2009 Author Share Posted February 4, 2009 Regardless, we will always know it isn't you. Nice one angolina! Quote Link to comment Share on other sites More sharing options...
wiegie Posted February 4, 2009 Share Posted February 4, 2009 So, I wonder who is right? Let me help you and allow you to stop your wondering. I am right. Seriously. Quote Link to comment Share on other sites More sharing options...
H8tank Posted February 4, 2009 Author Share Posted February 4, 2009 Let me help you and allow you to stop your wondering. I am right. Seriously. Uhm, wouldn't be so sure... Am I right? I don't know. Quote Link to comment Share on other sites More sharing options...
wiegie Posted February 18, 2009 Share Posted February 18, 2009 When the banking system and economy returns to normal, this increase in cash will cause a lot of inflation EXCEPT that, in my opinion, the Fed is going to not let this happen. Instead, as the economy turns around, it will pull cash back out of the economy, thereby limiting inflationary pressures. Am I right? I don't know. But it is what I think is going to happen. Credit easing won't stoke inflation, Bernanke saysFed steps closer to inflation target with publication of long-term price goals By Rex Nutting, MarketWatch Last update: 1:02 p.m. EST Feb. 18, 2009 The "extraordinary measures" taken by the Federal Reserve to restore the flow of credit vital to the economy won't stoke inflation, Fed Chairman Ben Bernanke said Wednesday. In a rare appearance before journalists at the National Press Club, Bernanke said the Fed will be able to quickly reverse much of what it's done to expand credit, once the economy improves. "A significant shrinking of the balance sheet can be accomplished relatively quickly," Bernanke said. Many of the programs are designed to automatically disappear once market conditions improve, he said. Others will require more active intervention by the Fed. http://www.marketwatch.com/news/story/fed-...=bigcharts& Quote Link to comment Share on other sites More sharing options...
Jimmy Neutron Posted February 18, 2009 Share Posted February 18, 2009 http://www.marketwatch.com/news/story/fed-...=bigcharts& I don't know that Bernanke instills a lot of confidence these days. Quote Link to comment Share on other sites More sharing options...
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