[yesme]

Originally Posted by licence2kill

Large bank reserves are a sign of tight monetary policy, not loose. We've known this since the 70's when Friedman pointed it out.

Yes, i understand the banks are not lending that money, what happens if they lend out that money in one week LTK? would you see inflation then?

Inflation in the pipeline is created money that has not been injected into the system yet...aka 2 trillion in bank reserves.

As far as I can tell that paper has nothing to do with monetary policy.

This paper by Michael Woodford (the most influential monetary economist in the world) does though:

http://kansascityfed.org/publicat/sympos/2012/mw.pdf

He is way smarter than me, I admit it.

as i follow the grumpy economist, i have already looked that paper over, and along with grumpy find it to be a good paper, until he gets to the "fixes"

http://johnhcochrane.blogspot.com/20...kson-hole.html


Also the thread was not about monetary policy as much as it was about the cliff we are looking over with multiple hands(trigger points, aka bubbles,petrol/reserve currency status, derivatives,etc)pushing us over.

Now what could go wrong in this scene.......

This produces a tiered network with a distinct
highly clustered central core of 12 SIFIs that account for 78 percent of all bilateral exposures and a large
number of financial intermediaries (FIs) on the periphery. The topology of the network results in the “Too-
Interconnected-To-Fail” (TITF) phenomenon in that the failure of any member of the central tier will bring
down other members with the contagion coming to an abrupt end when the ‘super-spreaders’ have demised.
As these SIFIs account for the bulk of capital in the system, ipso facto no bank among the top tier can be
allowed to fail, highlighting the untenable implicit socialized guarantees needed for these markets to operate
at their current levels. Systemic risk costs of highly connected SIFIs nodes are not priced into their holding
of capital or collateral.

e posted a video which he claimed was him/his friend firing an SKS that had been modified to be fully automatic. It was pointed out that they were merely bump firing the rifle and the video was soon deleted from the post.

Interesting, please link us to this said post.

[yesme]

Originally Posted by licence2kill

If people expect looser monetary policy in the future they adjust their behavior in the present.

lrn2lucascrtique

Exactly how much "looser" can you get? the fed qe 20 @ 500 billion a month instead of qe4 @ 85 billion a month?

[yesme]

Originally Posted by Space Pope

What happened to your blog, Garret?

Still there, just kind of left it there, got busy with life. It's nice to know, no matter how long i leave, you losers are right where i left you.

[EPAPressure]

I'm just saying...according to your "sources", this country was set to implode 3-4 years ago.

[yesme]

Originally Posted by EPAPressure

I'm just saying...according to your "sources", this country was set to implode 3-4 years ago.

Yes i admit that most of us were not expecting the masses of americans to not question how the fed(which is made of banks,aka jp,goldman,BOA) is able to bail out them self(aka goldman,jp,BOA,etc).

Perhaps if more americans understood what was going on, but as long as you can print money and the public goes for it, i guess we will just wait and see.

Just because something has not happened yet, in no way means that it won't happen.

I do give props to the elite for keeping it going, i can use all the extra time to prep that i can get.

On the flip side, since this thing started, you guys have been talking about a recovery..........

WHERE IS THAT AT?

[licence2kill]

Originally Posted by yesme

Exactly how much "looser" can you get? the fed qe 20 @ 500 billion a month instead of qe4 @ 85 billion a month?

There is no bound to monetary policy if you accept the market monetarist framework that I do.

[yesme]

I think you said it all buddy. Who pays the bill when it comes due or do you think you can print forever?

[licence2kill]

The central bank has absolute control over variable M.