Economics of FIAT printing presses gone wild.

[PocketChange]

Not an Economist by any stretch but even a simpleton can do this math.

Since 2008 Treasury has created monetary instruments = 5x the M0 in circulation.

$1 pre 2008 = $0.20 today

Genius move by govt... US military to preserve reserve currency status through out the world. Keep borrowing and just have the treasury print more monopoly money to pay debt.

The net effect thus far is average income and wealth has gone down 25% per american with substantial propaganda and efforts to maintain an illusion of status quo. The end result will be 80% decrease in $ value of all assets and will happen rapidly from this point forward.

The only way to stop the vacuum is to take out of circulation what they pumped in. Reality is once printed it is unlikely if not impossible to be pulled out.

Taxes are a meaningless system when the scrip being used can just be printed by the politicians. Just by creating and introducing 5x the currency into circulation the govt effectively created and collected a one time 80& tax not on income but on all $ denominated Assets.

Gold isn't the solution and neither are other currencies... IMF makes sure everyone is tied together.

 

[4thaugust1932]

There is only about $900 billion paper and coin dollars.
There is about $14 trillion dollars worth of credit supplied by banks.
There is about $55 trillion dollars in total debt, again, supplied by banks.
What backs the dollar is the faith that the $14 trillion dollars will some day pay the $55 trillion dollars (plus $217 trillion dollars derivatives contracts) off.

Ponzi/Pyramid scam on global scale?
https://en.wikipedia.org/wiki/Triffin_dilemma

 

[oldtime]

this is what happens when those of us that don't know zilch about how the economy works and we read a blog and it claims we are all headed for doom (usually to get you to subscribe) post a question on ET.

It's truly amazing how much disagreement there is about the the economy, especially when it comes to printing and fiat currencies.

Modern Monetary Theory (which is just a school like Buddhism or Christianity) states, we can print as much as we want or need, the only constraint is inflation.

I suppose it all makes sense if you understand what a dollar is.

What exactly is a dollar anyway?

 

[antitrust]

Quote from PocketChange:

Not an Economist by any stretch but even a simpleton can do this math.

Since 2008 Treasury has created monetary instruments = 5x the M0 in circulation.

$1 pre 2008 = $0.20 today

Genius move by govt... US military to preserve reserve currency status through out the world. Keep borrowing and just have the treasury print more monopoly money to pay debt.

The net effect thus far is average income and wealth has gone down 25% per american with substantial propaganda and efforts to maintain an illusion of status quo. The end result will be 80% decrease in $ value of all assets and will happen rapidly from this point forward.

The only way to stop the vacuum is to take out of circulation what they pumped in. Reality is once printed it is unlikely if not impossible to be pulled out.

Taxes are a meaningless system when the scrip being used can just be printed by the politicians. Just by creating and introducing 5x the currency into circulation the govt effectively created and collected a one time 80& tax not on income but on all $ denominated Assets.

Gold isn't the solution and neither are other currencies... IMF makes sure everyone is tied together.

yet m3 is still contracting. Inflation isn't as high as the peek of the housing boom , the money supply isn't either. Banks create the bulk of what your definition of money is , yet you blame the government. Contracting the money supply even further would mean less economic activity (spending) more unemployment and higher debts. Genius move Andrew Mellon

In a fiat money system taxes and bond sales are not used to finance gov. spending . Government always spends by crediting bank accounts. However they are legally ( not operationally ) required to tax and issue bonds to the amount spent. Taxes in a fiat are used to regulate aggregate demand. Bond sales are used to drain reserves to hit the feds target rate.

 

[oldtime]

Quote from antitrust:

yet m3 is still contracting. Inflation isn't as high as the peek of the housing boom , the money supply isn't either. Banks create the bulk of what your definition of money is , yet you blame the government. Contracting the money supply even further would mean less economic activity (spending) more unemployment and higher debts. Genius move Andrew Mellon

In a fiat money system taxes and bond sales are not used to finance gov. spending . Government always spends by crediting bank accounts. However they are legally ( not operationally ) required to tax and issue bonds to the amount spent. Taxes in a fiat are used to regulate aggregate demand. Bond sales are used to drain reserves to hit the feds target rate.

so, since there is no demand, that would mean lower taxes would be good, right?

 

[antitrust]

Quote from oldtime:

so, since there is no demand, that would mean lower taxes would be good, right?

correct, deficit spending does the same. Although I'm partial to deficit spending on capital goods. Building infrastructure and other capital is far better than spending on ipads and nintindos. Don't me me wrong the Infrastructure money ultimately ends up there anyway, but at least we have new bridges and so on, as well

 

[oldtime]

Quote from antitrust:

correct, deficit spending does the same. Although I'm partial to deficit spending on capital goods. Building infrastructure and other capital is far better than spending on ipads and nintindos. Don't me me wrong the Infrastructure money ultimately ends up there anyway, but at least we have new bridges and so on, as well

sounds like you don't give a shit, as long is somebody is buying and somebody is selling, and the health of the economy is based on how aggressively they are doing it.

 

[antitrust]

Quote from oldtime:

sounds like you don't give a shit, as long is somebody is buying and somebody is selling, and the health of the economy is based on how aggressively they are doing it.

give a shit about what. economic activity is buying and selling without it there is no economy to "health"

 

[PocketChange]

Whose M3 Number are your using? Why did the Fed really stop reporting M3?

Quote from antitrust:

yet m3 is still contracting. Inflation isn't as high as the peek of the housing boom , the money supply isn't either. Banks create the bulk of what your definition of money is , yet you blame the government. Contracting the money supply even further would mean less economic activity (spending) more unemployment and higher debts. Genius move Andrew Mellon

In a fiat money system taxes and bond sales are not used to finance gov. spending . Government always spends by crediting bank accounts. However they are legally ( not operationally ) required to tax and issue bonds to the amount spent. Taxes in a fiat are used to regulate aggregate demand. Bond sales are used to drain reserves to hit the feds target rate.

 

[antitrust]

Quote from PocketChange:

Whose M3 Number are your using? Why did the Fed really stop reporting M3?

the components of m3 are still available all it takes is that simple math you know how to do.

correction: it does appear that m3 has turned up, but not anywhere near previous levels. I'm curious were you ranting about fiat money when the banks were expanding the money supply around %15 per year?