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See this is a perfect example of what I am talking about with the use of the term "Reagonomics."....Here we have tradr 3 making an utterly useless and intellectually mangled, moronic political ideological comment parading as 'definition' of the term in a way the description, 'perjorative,' can...

But they don't really print. They buy or sell longer term interest bearing debt (U.S. Treasuries) which has the effect of increasing or decreasing aggregate bank reserves. The actualy 'dollars' in circulation have not changed much for over a decade...printed dollars are created and destroyed...

The 'dollar' is the non interest bearing demand debt of the U.S. Government, that by the operation of law is used as legal tender to settle accounts and pay taxes. Does that help you make sense of it?

What book on "Reagonomics" are you reading? The word itself is perjorative and highly subjective, more political than economic, a superficial catch all that seeks to conflate political hisory as economic policy. People could disagree about what policies should be described under that label, or...

Thanks for straightening that out. As you and maybe others appear to want less words, here is the nub, the basics, that answer noob trad3r's question and applies to other mistaken notions expressed on this thread: Currency in circulation is not inflationary. Money is credit. Credit...

Excellent comments? Are you joking? That is a prescription to make everywhere look like Detroit! You're right it makes housing really cheap. You should go to Detroit and buy and house.

Swan, granted the actual range of possible change in the capital gains rate between now and next year is uncertain. That is why I asked you to discount that risk and I stated the range, from 15% presently to 45%...the rate it will be under current law if Congress and the President do not act...

My clear meaning was that Fed QE action did not lower interest rates. If you just look at what happened you will see that interest rates rose and did not decline during Fed announcement and operation of QE; they went down when QE ended. I did not say why they went down; that was not the point...

Swan, you missed the point of what I wrote here and you are guilty of the kind of generalization that you complain of. Your statement about a1% interest rate creating more demand than a 10% rate is hyperbole, and as I said, it has nothing to do with the current situation where rate on the 5...

Swan, what is the point...you set up a comparison that is not at issue. What is on the table is reducing interest rates from 1.65 to 1. If you actually look at the history of QE you will see that interest rates rise when QE is announced and they decline when QE expires. The Fed says they...

See paper attached on 'transmission issues' relevant to this thread: http://www.federalreserve.gov/pubs/feds/2010/201041/201041pap.pdf Apart from the findings on the mythical 'money multiplier' which I have talked about in other threads...note the conclusion that the supply of money in...

Piezoe, I have been trying to offer here a specific discussion of how inflation and deflation work as processess in direct response to the original paradox question that noobtrad3r posed to start this thread. I did not contradict Swan Noir nor did I directly disagree with Morganist, we have a...

Morganist, you know I like to speak directly and clearly about what I am talking about and I like to reduce things to process level. I don't have a lot of patience for talk about 'factors' and 'underpinning' of value when you never identify any factor, any underpinning or explain the process of...

Only to the extent that bailing out a sinking boat succeeds...until they stop bailing.

Piezoe, we are obviously in a deflationary process in the way that I have described it...otherwise, why would all the CBs be trying to inflate?

Morganist, I got your point but I don't think it explains the process nor does it help with making useful definitions for these words. You must remember Milton Friedman's famous and generally accepted definition of 'Inflation:' "Inflation is always and everywhere a monetary phenomenon in the...

I think the best way to think about deflation and inflation is by reference to the financial process that underlies them. When we see general prices rising to the extent that we can measure that rise with an inflation index, such ast CPI or PCE, there is a a flow of finance that characterizes...

The most nasty part of this and why the issue of unfunded pensions is in this propertry tax discussion thread is that it sets up a conflict at the local municipal level. Unionized municipal workers, including Teachers are pitted in conflict with local property owners. The main funding...

Good to see you noticed that SS is in the national debt; I trust you can also find the interesting fact that by adusting the terms of the special obligations the Treasury is able to manipulate the debt ceiling. You have to uderstand that the credit of interest as 'special government...

Why is that the choice? Piezoe, what is it that you do not understand about the fact that the cash in from revenue for SS taxes is lower thant the cash out for benefits since 2010? This is negative cash flow regardless of how much interest is credited in an account. The interest is not...