by Summary:
Jerome Powell is going to speak at the Jackson Hole symposium where he will talk about taper and the zombies will go nuts.
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Mike Norman considers the following as important:
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Jerome Powell is going to speak at the Jackson Hole symposium where he will talk about taper and the zombies will go nuts.
Topics:
Mike Norman considers the following as important:
This could be interesting, too:
Mike Norman writes Class
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| Jerome Powell is going to speak at the Jackson Hole symposium where he will talk about taper and the zombies will go nuts. |
Thank You, Mike!! What's up in Hollywood?
Mike is in Hollywood to film his new movie called "They're Printin' Money part II" starring Peter Schiff and Jim Rodgers as the dummies
HAHAHAHAHAAAHAAAAAHAAAAAAAAAAAA
Hahah lol special guest star gulaaag
Next time Mike, give us an example of the material from Wall Street that you think is 'unbelievable'. Just so we can get an idea of what you're referring to. Thanks!
Stick around a bit and listen to his podcasts and you will easily find out
ghkq2
vyn.fyi
Norman is The Godfather of MMT podcast “Im gonna give u the knowledge ya can’t refuse”
man u late
better late than never
You'll be up really early with the time change!
Missing those mental game talks.
I am a little confused when Mike says 'Monetary policy is meaningless, and FED's treasury purchase impact nothing rather than to lower the bond yield'. Of course, A person like Mike has his deep reasons behind this statement. However, my understanding is that when the FED purchases treasuries on the market (say secondary market), it pumps money into the economy via people, market funds, and even banks in exchange for treasuries such as bonds etc. That means those people and funds out-there now are holding cash that they got from selling bonds for example, and they may use these cash to buy other assets such as stocks or real estate instead. That means the economy is now more liquidated with cash for investing and that drives assets up. On the other hand, with Fed's treasury purchase, the government's bond yield is driven down, and this ratio is used for the discount rate in other market such as stock when investing. It makes these markets up like last year. Whereas, if FED does not buy bonds, and the government issue more bonds, market will lack of liquidity, bond price goes down and bond yield will go up and assets price will go down. I see that there is kind of impact with Fed's bond purchase program, I appreciate any profound response to be clarified. Thanks.
You can think of treasuries as a term deposit savings account, whereas reserves are an on-demand everyday checking account. Treasuries are totally guaranteed, whereas reserves are partially guaranteed, so obviously treasuries are a higher quality asset, so help with the capital adequacy requirements of Basel III and all the other regulations on bank capital. REMEMBER, reserves are the result of bank deposits, which are liabilities of the banks, so this is what needs to be balanced in terms of risk so the banks are free to lend more. That's where they make profits. At the moment and for the foreseeable future, there is NO LACK OF LIQUIDITY. Quite the opposite problem. Interest rates are pulling towards zero.
As to your understanding that QE and repos "pump money into the economy", this is quite wrong. Reserves never leave the central bank (the Fed) because they are the liabilities of the Fed and you need a central bank account to hold them. Ordinary people do not bank with the central bank — that's why we have private banks. Hence, reserves cannot be spent into the economy. They are used to settle payments between banks, and between banks and the government. You also should not confuse reserves with "cash", although they are both USD.
David Cann thank you very much.
i really find it hard to believe that the fed will hike
Can't believe we get your informed opinion for free like this. Top notch!
Martial arts , skiing , Mike enjoyes sport . Competitive nature . He looks in great shape . Be well Mike.
HOORAH!!!! Great stuff!!!!