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Billyjoe...I tried to make it clear that the dollar bills were created as a liability on the Fed balance sheet...that means the Gov't owes something with regard to the Dollars...they back up that obligation by protecting the credit of thier longer term debt. When the longer debt has no...

Oldtime, you are the best. You remind me of a freind of mine, retired, was a top lawyer, international lawyer, for Mecrk; tells a great story about negotiating a distribution deal with a witch doctor in Haiti.

GDP is not a measure of a nations 'wealth.' GDP is a tortured measure of spending. It was created by an FDR socialist working at NBER who wanted to conflate the private sector and the government sector in one metric. He himself did not believe it should be used as a measure of wealth...

Sorry Achilles, but the 10% reserve requirement is applied only to demand bank deposits, reserve for other types of deposits are less. Bank reserves you refer to are based on the quality and nature of bank deposit liabilities...not bank loans. Bank loans are assets and the banks' ability...

Newmoney24 et. al., yes money is quite literally debt. Look at it, it says 'note' right on it. What we call money, 'Dollars', is a non interest bearing demand note issued by the U.S. Government. There is no collateral for the note...it is a promissory note...backed only by the 'full faith and...

What Malthusian crap. You would do better reading or skimming (its a long read), Will and Ariel Durant's, "The Story of Civilization" and consider the role of population growth in the wealth of nations.

Plyka, you didn't understand anything I wrote. I think I wrote it very clearly and simply. You read what I wrote and then started asserting that the Fed actions were keeping interest rates low and that the issue was all about supply and demand of treasuries. We are too far apart for me to try...

Just in time to be in when earnings go down and multiples are compressed.

That chart of the owners of Federal Debt does not distinguish between different forms of debt and maturity. Most the Fed purchasing of debt has been in longer maturities, while troubles with bank solvency, money market funds and the general process of deleveraging has driven private capital and...

Fed Gov. Fisher of Dallas today compared the QE and other actions that explode the Fed balance sheet with 'Hotel California.' He said that he is not sure that the program can be ended, that 'you can check out but that you can never leave.' That is a cute sound bite but I don't think it...

I never said that interest rates have not declined over time; I suggested that the Fed did not cause the decline with QE and that every time the Fed announced QE the rate on Treasuries has increased and remained higher during the QE, only to decline at the end of each QE. Mortgage rates of...

The price first went up from around 1.5% on the 10 yr when QE 3 RMBS and continued TWIST was announced over a month ago...it went up to about 1.75% at that time and then drifted back to around 1.6% with implied contraction from the fiscal discord...so, yes most of QE 3 was in the news. What was...

This really should be part of the above post...but it took me longer than 30 mins to add it as an edit. Seriously, contraction is caused by the fiscal context which has destroyed ROI expectations on investment resulting in a contraction of private credit formation and so, private assets...

This is the way it happens every time. If you paid attention to QE1, 2 or 3 before this you would have seen that the announcement that the Fed will buy Treasuries has always hurt the price of Treasuries and caused the yield to go up....every time. If you actually look at what happens instead...

Common Riddler, you started out saying it was brought to your attention by 'homeowners.' It does not mean that they are using the word correctly; they are not...the pricise word as indicated by another poster above is 'mill rate' and the concept combines both the 'mill rate' and the 'assessed...

The term 'rateable' refers to property tax. Property tax is caculated by applying the local property tax rate to the assessed value of the property. When someone says that my 'rateable' is going up they mean their property tax is going up...either because the property assessment is rising or...

Hunter, there is no fiscal 'cliff.' It was a stupid metaphor made up by our Ivy League lobotamized Fed Chairman in testimony, and it was adopted by morons posing as reporters in our comic book media...and now you are summerizing their definitions and observations of a propaganda slogan... in...

Matt, check out this essay written by a late friend of mine in the early 1990's; it addresses many of your concerns and can be understood to agree with you. It revolves around the observation that voters will always choose the promise of 'good socialism' over 'bad capitalism.' It could have...

Humpy, your comment points out the difference between ideology and reality. "Big Boss", "Drone Workers": you are living in a cartoon. Do you think the workers at Google, Apple, or even Cummins Engines are "drones?" How about a guy who makes fins for jet engines at extremely high tolorance...

Matt, I did read your argument in the first few pages of this thread and it is a sesible argument. Clearly, those without skills are facing a tough stretch and it may likely manifest in geo-political unrest but I don't think the cause is technological advancement. This idea of surplus labor...