Tapering - "Canary in the Mine?"

[DiceAreCast]

What a pitiful character. By the way, it's called moneTARY theory. Keep on believing the fed and treasury are constantly engaged in coordinated operations and that there is no debt that must be repaid, and some of the more esoteric crap you spout. You appear to be a highly confused academician who has lived his entire life in ivory tower and who has lost all touch with reality (or perhaps never got in touch)

It was a mistake to interact with you. Over and out

I don't know what time zone you're in but it is very late here. I have finished my work for the night. Am tired and going to bed. Have a nice night, and try not to project. There is no need for you to be defensive, you can be very good at what you do and still not have a clue about money theory.

 

[Cuddles]

Not bait... truth.

oh, OK, where can I find your critiques of QE from last year?

 

[kmiklas]

oh, OK, where can I find your critiques of QE from last year?

I don't know what you're driving at here, but truth is that at least 120B/month of Fed money is pouring into the markets, and it's creating inflation. I'm looking for indicators that this cash flow will be tapered. Agree or disagree? If the latter, then state a counter-point or argue the other side.

 

[longandshort]

@kmiklas the Feds program is not what’s driving inflation. We’ll probably hear them talk about tapering later this year (August - November).

 

[kmiklas]

@kmiklas the Feds program is not what’s driving inflation. We’ll probably hear them talk about tapering later this year (August - November).

Then what is??

 

[longandshort]

Then what is??

The Feds QE program does not create inflation. Inflation is driven by demand or supply shocks.

 

[piezoe]

Then what is??

Probably recovery after stepped up federal spending into a slowed economy. The Fed programs are invariably in response to fiscal policy. They don't make this policy, but they are mandated to respond to it. The Biden initiatives are aimed at future productivity gain, there will be some up tick in inflation in the short run and the Fed will respond accordingly, but there is always lag. The Treasury always "money Finances" its spending and only later drains money from the economy via issuing bonds. In the meantime, the Fed which acts, as it always does, as the back-up market maker for Treasuries to assure their liquidity, has been, I believe, a net Treasury purchaser on the secondary market, which bolsters bank reserves. This is probably necessary in part to maintain its, for the time being, low interest rate policy but also to facilitate Bond liquidity in a market that will be flooded with new issues. We have a top notch money theorist in Yellen at the Treasury she will coordinate with Powell (and educate him as needed!).

 

[piezoe]

It was a mistake to interact with you.

I agree!

 

[longandshort]

We have a top notch money theorist in Yellen at the Treasury she will coordinate with Powell (and educate him as needed!).

@piezoe I generally find your posts interesting, but I gotta go with @DiceAreCast and say it's "monetary" theory.

Another point, just having read your posts, I think you both are speaking truth but from different perspectives. You're taking a more prescriptive approach, while Dice is speaking descriptively.

 

[DiceAreCast]

Or in other words, factual vs delusional. This guy has a hugely inflated ego and can't accept correction. He claims he can apologize and/or stand corrected but he really can't. Some self declared hobby economist who thinks he is an expert but who, unfortunately, read all the wrong esoteric books. Some of the worst human beings to be around with are not assholes or maniacs or even sociopaths. It's people who can't ever apologize, ask for forgiveness, or be corrected. Someone who can't be wrong is a truly pathetic being.

@piezoe I generally find your posts interesting, but I gotta go with @DiceAreCast and say it's "monetary" theory.

Another point, just having read your posts, I think you both are speaking truth but from different perspectives. You're taking a more prescriptive approach, while Dice is speaking descriptively.