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Where are all these quacks who've seen saying this for so long and are so WRONG??!!!
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Mike Norman considers the following as important:
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Where are all these quacks who've seen saying this for so long and are so WRONG??!!!
Topics:
Mike Norman considers the following as important:
This could be interesting, too:
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| Where are all these quacks who've seen saying this for so long and are so WRONG??!!! |
Isnt that why the fed was buying mortgage backed securities to keep that interest rates down
Feds buying has to do with a reason, whatever that is, except to keep interest rates down. Feds sets interest rates
@zaiks0105 and the purchases of those could be an additional why to do it to also make sure the bank has the resourses they need
Borrowing money from China someone has got to explain to me. Why the United States federal government would need to borrow Chinese currency when we create our own currency. Unbelievable
@Will Finn What a bunch of bull crap keeps coming out of your mouth
@Danny Windham Why did you ask for an explanation only to tell everyone that you already knew the answer? If you don't want an answer, don't ask for an answer. Pretty simple.
@Will Finn It was rhetorical obviously.
The US doesn't borrow RMB from China. Maybe a little to facilitate trade.
People think the USA borrows United States Dollars from foreign countries that don't create any US Dollars.
So where do foreign countries' dollars come from? USA govt spending + USA banks creating credit.
@Chico blanco verano Must've been the language barrier.
Following you into selling this market on a cutback in unemployment benefits. lol and people saying I'm nuts because rates are low. It's unreal people think low rates have magical powers or something.
The bottom's dropping out, 150% inflation!!! China's gonna invade to get their munnie!!! Put all your dollars into dogecoin and colloidal silver!!! Sell, sell, sell!! Aieeeeee!!!
I Know One Thing By Watching Michael, Is I Get A Good Belly Laugh At Least Once In A Segment
Long live the 'they are printing' crowd…I hope they never come around…I mean it…
widow maker aka Japan is going to default on their bonds…lol…
name says it all
Questions for you Mike: can bank reserves be converted into cash, that later on can be spent/used to satisfy customer's withdrawals ? Or does it only sit as an accounting balance in the FED's liabilities lead sheet? I heard there were two type of reserves: bank reserves and reserve assets… Could you please enlighten me on the subject?
The assets of Fed consists mainly of reserves, banknotes and government spending (like the Covid check they mailed out). Your deposit at the bank is a reserve, but when you take it out into your pocket they are banknotes, so yes, it can, but that is the only way it can be converted. Otherwise, it is always parked at the central bank or Fed for the US. And there is only one type of reserves.
Are you thinking of Reserve requirements and Capital requirements? They are indeed different things.
How does the FED drain reserves? They exchange them for bonds lol. The "money" never leaves the banking system. It can if they lower reserve requirements in which case they just become customer deposits again.
Why do we have QE. Is it not true that the fed is buying our own debt. Wake up everyone.
Mike Norman knows it all. He is my hero What a joke………..
@Chico blanco verano Do you think the stock market is going up forever.? If you do you are in for a big surprise. I have 20 % of my wealth in physical gold. It has done a lot better than bonds. Everyone should own some gold.
@Pete D I am bearish on the markets and will continue to be so as long as QE is locking up higher and higher levels of collateral in the commercial baking system. The deflationary narrative Snider and Van Metre have is even worse than the realize BECAUSE MMT is true.
@Pete D Gold has done better than bonds but worse than the stock market. At other times gold spends years losing value (remember gold at $300? I do) You could've bought ETFs and made way more money.
@Will Finn I could have bought a lottery ticket and won 10 million dollars. I guess you always do the right thing at the right time. You must be Mr. perfect.
@Pete D If you bought a lottery ticket you would've lost money. But hey, Gold makes you feel superior and indestructible, so it has that value as well as being a hedge.
Mike spent too much time in the sun . I think he might have fried his brain?
Thanks for sharing this Norman. God bless you and remember Christ is coming soon!
@Pete D I can answer all your questions about the economy but you can't answer any of mine. We both know why. If Inflation causes interest rates to rise, why are rates at Zero Percent?
@Will Finn Because the fed is buying all the debt. It is that simple.
@Pete D If the Fed buys all the debt, why are you worried about Bond sales? You literally just said we would have trouble selling bonds, but now you say we have a guaranteed buyer for all of them. Which is it?
@Will FinnIf You do not see the danger of a govt' buying it's own debt. It is called currency debasement. If you think that is not going to cause a problem in the near future,you need your head examined. Are you that dense??
@Pete D 50 years ago people said the govt buying its own debt will cause a problem in the near future too. It's been 50 years. Still no problems. Why doesn't any of your "common sense" ever actually line up with reality?
Mike's got his camo tank-top and his jewelry and his "yooooo." He is basically the cool uncle I wish I'd had growing up. If this man has grandkids I bet they are psyched about visits.
"28 Trillion in debt. 30 day T-bills are at 0 percent." That sums it all up right there, doesn't it?
@Pete D There is no other country on planet Earth that creates the United States dollar, except for perhaps North Korea counterfeiting $100 bills.
If the US starts heavily borrowing Euros or Rubles or some other foreign currency, then worry about it.
No country is capable of net lending United States dollars to the United States.
Instead, net US spending provides Americans and foreign country with extra dollars that they can choose to park in their US treasury accounts.
@Pete D Banks borrow from the Fed when they are lacking enough reserves for meeting their requirements for overnight clearing of payments. Most of the time, Banks that are low on reserves just borrow from other Banks that hold excess reserves, at the overnight lending rate.
@Pete D it would not be a good thing for the FED to buy up all the income producing assets from the financial system. All the FED does is turn that directly over to the treasury every 3 months, effectively deleting those dollars that could have been profits of the financial system institutions/banks.
I mean, the FED could technically buy all your equities from you at some price it determined, but I'm sure you would rather hold on to your equities and dividends instead of just a cash balance in your checking account.
@Pete D yes, the Fed removes interest paying Treasuries from banks and replaces them with "cash" reserve balances.
It also has rules that punish Banks for having excess Reserve balances.
(Banks do not lend out reserves. Banks create loans out of customer signatures, on legal documents.)
@dilbertgeg They can also take those dollars and buy assets in this country. Farm land and Real Estate and other assets. Foreign investors own plenty of homes that american's pay rent to. One day they will own everything.
Yeah but according to austrianism, savings have to be first saved up by the private sector. Therefore they will not lend them out at 0%
40 million student loans payments due to start Oct.1
what would the 10 yr interest rate be at this moment without manipulation of money by Fed?
@Pete D so private they have one customer by law lol. You have no clue what you’re talking about. The FED is the government’s bank. The “shares” member-banks have are not like shares that you have in Tesla or whatever. These shares don’t entitle them to profits of any sort. It just gives them a seat on the FOMC and access to overdraft liquidity. The FED is a clearinghouse of payments. I’m not telling you there’s nothing nefarious about the FED but I am telling you this narrative you have accepted as gospel is retardsville. I honestly suspect it’s deliberately propagated to obscure the hidden constraints being placed on growth.
@Chico blanco verano The bottom line is The white House and Congress do not run the country. They are puppets for the people above them who call the shots. I can only worry about my own ass. Everything else is bull crap.
@Pete D you are correct about this: over time, China's middle class will grow, and they will consume all their output and gradually reduce exporting United States consumers.
I guess that's what has experts panicking, the fear that American workers could have a lot more jobs making stuff that we currently import. How terrifying is that?
@Pete D the idea that increases in the money supply automatically cause inflation, that is 100% true … true for an economy like the Soviet Union, which was never a free market economy.
@Pete D Congress has modified the Federal Reserve's operating instructions over 200 times, less than 250 times.
100% of the Feds net profits go directly to the Treasury, which does not need those dollars.
But name one other powerful corporation that pays 100% of their net profits to the government.
tips? does this show the value of 10 yr bond?
Great work Mike! As always!
I am tired of arguing with you MMT fanatics. You will learn the hard way. Good Luck.