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Sorry to single you out MrN; there is a lot of stupidly going on here since I left this thread weeks...months ago... The distinction between corporations as persons is misunderstood. The original distinction was a legal fiction so that corporations could have standing in courts as persons...

MrN, that comment is currupt; it is also stupid.

There was no deposit insurance until it was created in reaction to the widespread bank failures of the Great Depression. Prior to that time large depositors shopped their banks for solvency and were often directly involved in those banks. Under that system the banks with large depositor...

Tere is a reason their 'mentality' changed...its not a virus; its not magic...there is a 'rational basis.' I think it is a rational response to the fiscal context. What do you think it is. Do you think companies hoard money to be mean. Or might it be that they think ivesting capital in...

Epic, I will leave the elasticity discussion where it is. I thnk it is mostly beside my point. I think it is a concept that is only useful in an obvious way. You think it is on point becuase it offers another explanation to credit contraction beyond what I suggest. You beflieve the concept...

I don't disagree with the obvious and intuitive notion that when you raise the price of a thing you may likely sell less units of that thing immediately following the price increase. Of course it is a lot more complicated than that, in that it depends on the individual thing and how special...

Epic, reflecting on your comment I am reminded of an old movie, "Oh Luckey Man," and a quote from the sound track by Alan Price, "If knowledge hangs around your neck like pearls instead of chains, you are a luckey man.'' I can also hear a refrain from Steely Dan's "Reeling in the Years": "The...

TGreg, it is clear that you are a true economist; I know that becuase you used the expression...'OTOH.' I agree that the purpose of recent Fed policy has been to push base money expansion, expansion of the Fed Balance Sheet, into the larger 'economy.' This policy is based on Keynesian...

The biggest problem with the economics departments in 'elite' academia is that they are seperated from the finance departments at the university level and at the liberal arts college level, they don't even teach finance. That is amazing if you think about it...not including finance in your idea...

Really Oldtime, I am sorry you are resolved to die...but the sentiment you propose before you go is morally currupt and obviously stupid, as well as impractical. You suggest that you (and suppose by extension your government) will borrow money with the expectation that you will die and...

Traitor, Oldtime, and some others...I think Richard Fisher of the Dallas Federal Reserve called you guys, "schmucks' today. This is what he said in his speach: “The elemental Jewish commandment” in the working-class neighborhood where [Irving] Kristol grew up was: “Don’t be a...

Understand that the logic of the Quantity Theory of Money still works in a fiat context if you include private credit in your idea of money....then the money supply issues merge with the aggregate credit issues so, you have to look at the private credit aggregage and its rate of change along...

Traitor, the Fed creates base money by recording a liability entry on its balance sheet, called "Dollars." The 'Dollar' is the non interest bearing demand credit of the United States. It is a debt instrument, the money is the liability of the Federal Reserve. It says right on the Dollar Bill...

Traitor, you don't get what I am saying either. I am sure it is because I don't explain it well enough so, I appologize. 'Money' the way you think about it, is not what is important. Its assets that are important. Without assets there would be no money. We create credit based on assets and...

So what are talking about doing? Feeding a starving person? In the U.S.? Are they the ones without the cell phones? Or are we talking about trains to nowhere that will never pay for the cost? Or windmill farms that cost triple the price of nat gas and need nat gas back up anyway? Who do you...

I understand good intentions; its just that intentions don't guarantee good results; sometimes you get quite the opposite. Just because you want to do good and help poor people, but then act in a way that appear positive on your superficial analysis, and that ends up making the situation much...

Humpy, I guess you didn't understand anything I wrote. Nobody really got the money..the Fed used the money to buy assets from the banks and lowerd the banks income. Money is credit and credit is dependent on the value of assets. If you take 'money' from the 'rich' you immediately devalue the...

That is the illusion; for the 'Real Dow', adjusted for Gold, to be worth as much as it was worth in 1971, it would have to have the illusory value, the nominal value of 31,000. You think you are just 200 points from par and yet now you can't retire. You think you are just 200 points from par...

Adjusted to Gold, the 'Real Dow' is 57% lower than it was in 2007. This might explain why the economy does not appear, or feal to be as good as it was in 2007; why there seems to be a disconnect between the real economy and the public stock market. In 2007 the Fed didn't have a policy of...

First you have to back up and understand that all taxes are paid by people. Corporations are owned by people and corporate tax is paid out by owners, shareholder's, it is an expense against the owner/shareholder's interest. So, when you look at a corporation you should look at the shareholders...