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Of course you are referring to credit created by fractional reserve baking. But lets not forget this kind of "magical money", as you call it, disappears when the loan that created it is paid off. The Fed influences credit by raising or lowering interest rates, and via its power to regulate...

!!! The thing about this is the Fed can tame inflation by the induced unemployment route despite inflation being caused by shortages. Nevertheless, it's ridiculous to fall back on this crude Fed tool until logical ways to tackle a supply shortage have at least been tried. Sadly, logical...

On average, however, what overnight posted about the relationship of volume to the spread is true.

yes, that's one meaning. "credit" is both a noun and a verb.

It is not terribly wrong to refer to QE as printing, as the Fed hopes it will have the effect of making credit more attractive resulting in a temporary expansion of the money supply. Actual creation, "printing", of new semi-permanent, fiat money is not, however, what's really happening in QE...

:rolleyes:

The current inflation is driven largely, but not wholly, by externalities. We are getting little help from the federal government's weak administrative side and an intentionally disabled and shut down legislative side. In an ideal world, these two sides of our government would function...

Why do you have to pay a fee to get a passport? Why does the Interior Dept charge for grazing rights on federal land? Why do we pay taxes to the federal government? I suppose the reasoning is similar in all these cases. Certainly one very obvious reason for the fed charging interest on the...

you have it backwards. By definition, the government can't legally make a profit at the expense of the U.S. taxpayer. Are you trolling me now? :D

Here is the basics. It is very simple. No part of he government retains any net profit, not even the Treasury. Any residual profit after expenses made by the government, or any part of government, flows to the Treasury and reduces the amount of money the Treasury has to pay out, just as the...

I'm afraid you've lost me. Are you referring to short terms loans it makes to the Treasury? It would be entitled to charge for that -- could be interest or just a fee for service but the Fed never makes a net profit after expenses. Any net profits that any part of government makes go back to...

That's exactly right! Treasuries are just a form of money that does not circulate until and unless the Treasury is converted back to bank reserves. But keep in mind the St. Louis Fed article is about the use of Treasuries, or other high grade securities, in Reverse Repos agreements. In other...

Let me attempt to address the issue of Fed Branch Bank ownership, not only from my own point of view but also from the recent view point of a U.S. Appeals Court. I should add that this is also the view adopted, without exception, by all experts on Money Theory and Federal Reserve-Treasury...

The fed doesn't generally cause inflation, however there are instances where it would like to but finds it difficult even by intentionally creating excess reserves. In the case of the present inflation, some think the Fed's failure to taper QE sooner on top of the additional money pumped into...

Good for you. Let those who can't pay for their education get a job at Walmart. And here is another great money saving idea I know you'll like. Let's fund the dumbest people in our armed forces, the infantry and the MPs, with bake sales. If you're dumb enough to sign up for the infantry, you...

Maybe you need to become a more enthusiastic supporter of good public education. Those students that went to the for profit "schools" were naive and easily duped. They weren't smart and sophisticated like you.

You are applying logic, which is not applicable here. (Notice how when speaking of Russian policy we often don't say Russia or Russian policy, instead we say Putin, because Putin does the thinking for all Russians, if they object they get arrested.) There is nothing to negotiate. Putin...

You seem out of touch with 21st Century reality. However, I am not an expert on Russian-Ukrainian relations. Why not ask a Ukrainian for their opinion of Putin. The Ukrainians have expert knowledge of Russia and Putin.

In democratic countries, a demented President, does not cause the government to stop working as usual. The President serves at the pleasure of various governmental bodies that have the power to remove him, as do the people. It's a messy process, as are all democratic processes, but the process...

This is the attitude of tyrants. It is impossible to earn true respect by pointing a gun at someone. Putin's childish threat to use nuclear weapons is just one of the many reasons he gets no respect. The West does not expect him to use nuclear weapons unless he is truly insane. In that case...