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Scriabinop23, you are right, my formuulation was wrong. I didn't think it through clearly and I understand your reasoning and I agree with you. Thank you for the correction. Stated in my own words, do you agree with this reformulation: the pay off of a loan asset, to the extent that existing...

I don't know what you mean by 'how long I am into trading.' I guess this is my day for definitions. I have been trading my own money for many years. Right now I am about 65% short and 35% long. I am long China and short Europe and generally disgusted with most of the U.S.

This reserve trend could be influence by the winding down of the Fed purchase of agency debt. The Fed program was budgeted to buy 1.2T of agency debt by March 31...next week. I don't know where they were with that budget when you looked at the H.3 report. As Fed buys agency debt they credit...

Morganist, I have a few questions before I make a positive response to our discussion about the aggegate demand as an output driver: 1. What metric do you use to describe aggregate demand? Is it GNP or something else? 2. What do you mean by 'transfer function'? please define that term...

Aggregate demand is a metric, its a result...it doesn't drive anything...it is driven by something else...its a total, its a product in a mathmatical sense, not a multiplier. You could argue that demand has an impact on price in a micro sense but you cannot make a logical argument of that in an...

Aggregate demand is a function of production. So, you would be better to promote production and see it show up in aggregate demand. Like excess reserves, aggregate demand is a symptom and not a cause. The big deceit in the current attempt to drive GNP by gross government spending, not...

You should start by discussing how each school defines and measures inflation. The Monetarist school represented by Friedman says that inflation is always and only a monetary event. By this the Monetarists mean that it is the increase in the supply of base money alone that drives...

The chart makes its point but it is exaggerated and over simplified. This chart was included at the beginning of our long M1 thread discussion about currency and debt. To be fair about talking about debt over time you should express the level of debt as a percent of gross domestic product...

Learn to speak mandarin and then take any job to get work permit or residency in Singapore or Hongkong and see what turns up...go to school there.

Martingouhl, I don't know exactly what post of mine you are responding to, but it would not be my intention to confuse monetary policy with fiscal policy. I recognize the distinctions that seperate the two and the interactions that link the two. When I spoke of the 'dollar' as a debt...

CR, you are payin attention...the latest money multiplier number published by the St. Louis Fed was .809...lowest in the history of the index. Here is some thing else, not so obvious, to ponder: deflation operates to make debt more expensive to pay off. This fact will be a hardship for the...

Canmo, thank you for the note. You do understand what I said and you recounted clearly. It’s good to be understood. But then you ask what about deflation?...I don't see it in commodities and it is otherwise lumpy and inconsistent in other sectors. My view is that we are in a...

Canmo, you ask a good question and I think you suggested an answer. I don't disagree with your observation. It has been hard enough for me to get my mind entirely around these issues framed in the domestic context. Of course the international ramifications of our monetary policy, becuase...

We really shouldn't take the money debt thing too far into philosphy. It is important to remember that the paper money we use is government debt. In the past private debt (Bank Notes) were often used as money, along with metal coins, primarily gold and silver. During the time of Wild West the...

Coins are debt too, they don't say "Note", but nonethless they are derivative of a 1 Dollar"Note",...you know, .01, .1, .25, .5, 1, all derivative fractions of a debt note that bears no interest. The paper says "Note" on it because that is what it is. It says what it is right on the paper...

The1, no I am not an economics professional. In my career I was a director of an Economic Consulting Firm that was run by my good friend, now deceased, Jude Wanniski. I benefit from having had a lot of drinks with economic think tank guys and showing them how someone who runs a business...

Karl, I think you make a distinction without a difference...its a unit of account accepted in commerce for trade...but cash is quite literally the non interest bearing debt of the U.S. Government. It is a note that promises an exchange of a unit of value over time...clearly a promise often...

Karl, what do you think 'money' is? Did you ever open your wallet and look at the cash? You will see that right on the top of each piece of linnen it says, "Federal Reserve Note." If this is not tradeable non interest bearing demand debt, then what is it?

The game gets tough to keep playin if the Treasury auctions begin to fail. Biggest problem for the Fed is that excess government debt, including state and municipal debt, will go into accute crises if interest rates rise and at same time Fed promises to restrain inflation with interest rate...

Those would be pretty dry books...I think you might rather skim papers. NY Fed has good paper on money supply and excess reserves written last August...Regional Fed sites are good places to look for papers. Google, Japan academnic papers on Money Supply as they have been on forefront of...