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The "reserves" are accounts The Treasury and Banks maintain at the Fed for the purpose of clearing bank transactions. These accounts are also a tool of the Central Banks for targeting the wholesale price of money within a narrow band. (What, in the U.S., we call the "fed funds rate" .) The fed...

Do whatever you can to get Trump and Pence out of Government as quickly as possible. As long as we have a con artist and Jackass leading us, we are all in Trouble -- no question about that.

The posts in this forum simply indicate how few really understand Central Bank-Treasury operations and modern money. The vast majority of people think that government finances mirror private sector finances. But that's quite wrong. I have been dealing with a lunatic in the economics forum...

No. it is not true. There will always be enough money. The government is the source of money and they can create whatever is needed.

The only way there would be a panic is out of ignorance. Though there will always be such a thing as panic, there is no longer such a thing as a run on the bank where you wouldn't be able to withdraw your money. You will always be able to regardless of whether your particular bank is solvent.

It's not Earth shattering. Canada has had no reserve requirement for years, ditto Australia I believe, but I did not confirm. Targeting Aggregate reserves has been the mechanism the CB in the U.S. used to target the funds rate. But there are other ways to do this. Banks that are solvent will...

Ph.D., Electrochemistry. My specific area of research in later years involved both nucleic acid chemistry and solid state devices. I agree both the CDC and the other article I quoted the 50% figure from are too high. Something is wrong.

Huh!!! Read Warren Mosler's Book, and then get back to me.

Day to day Aggregate Reserve adjustment by the fed is mainly via open market operations carried out in the repo market. Again you'll have to study this on your own.. I can't write any more. just read Moslers little book. As long as a bank is solvent they will always be able to meet their...

As a Scientist, I have been puzzled by the reporting of so many asymptomatic CoV-2 infected persons. I initially assumed that what was being reported as asymptomatic positive were mostly pre-symptomatic positive, but the number still seemed way too high to me. Our experience with related...

I am far more concerned about my President than my ex-Presidents. And it is not about Golf. I wish it were.

You're referring to what we call "securitization", i.e, creating new securities from packaged and compartmentalized loans. The securities that result, called collateralized debt obligations or CDOs are sold on the open market. not just to other banks. Anyone can buy them. It is the CDO...

And of course the average Joe is right! It's you lunatics that are wrong. The fed is in operational effect an independent branch of the U.S. Treasury that oversees and regulates, and facilitates the Nation's banking system and also acts as the Treasury's bank. This is evident when one...

To avoid confusing yourself anymore then you already are, may I suggest you stop reading Investipedia. Read Warren Mosler's book instead.

Jem, the only reason you buy into this conspiracy crap about the fed and think there is something sinister about the fed printing money is because you've never understood that the Government is the source of money, and our productivity and taxes are what gives it value. So of course the...

No where in my discorse with you did I say that. Of course they can alter the reserve requirement. You're not having a language problem, your having a problem understanding the mechanism the U.S. Central Bank uses to target the wholesale price of money. The reserve requirement is a key element...

Banks don't have to sell assets to make loans, AND you have the order of these transactions backwards. The bank will correct their reserve balance, as needed, via the interbank fed funds market, after they make a loan, not before.

Do you suppose their is something in the water causing this rash of lunatics?

There you go then! Mission Accomplished.

NO! In the U.S., fed Open Market operations have nothing whatsoever to do with providing banks with money to lend. Why do you think this buying and selling of bonds is referred to as Open Market? They buy and sell on the "open" secondary market. Again, what is this now, about the tenth time! ...