Well if you don't believe me, then here is a graph of the US money supply.
http://upload.wikimedia.org/wikipedia/en/9/95/Components_of_the_United_States_money_supply2.svg
Yes, correct.
But increase or decrease in availability of loans does not make any permanent changes to the money supply.
Furthermore when the banks do return to "normal lending environments" you WILL see the inflation ridiculousness caused by the crazy FED money printing.
Loan contractions...
I understand how fractional reserve banking works.
First let's take the US gvt. out of the equation. The US gvt. does *not* control monetary policy. They're not even allowed to look at the books that the FED keeps.
Now the FED, they do control the money supply. On top of this they *also...
Not a single dollar is being destroyed by banks writing off loan losses. This money flowed into the economy the day the loan originated...
If you borrow 50k from the bank and walk out the door and spend it. That money joins the economy and regardless of if the bank ever gets paid back or not...
I understand this is less than chump change compared the kind of money most people trade here.
These are all of my trades for the month of August.
Net profit for the month 59.5%
I was looking to buy jan11 puts on AIG and I noticed that some contracts were only good for 5 shares because of the 1:20 reverse split..
But why do those contracts have such a HIGH bid and ask price if they only control 5 shares, shouldn't they be lower than the normal contracts?
example...
The only way the USD can "go up" is if:
1. Large quantities of USD are physically destroyed, written off or hoarded out of circulation.
2. Productivity undergoes a big positive jump.
So if you ever see it "go up" in a non-temporary and localized way what you're actually seeing is an...
It's not as simple as shorting the dollar.
So you short the dollar.
They're inflating the hell out of it, great you should be making tons of money right?
Oh wait but they're also inflating the euro and the pound and all other foreign currencies...
So on the currency exchange the...