bubbleRefuge

80 ms·

391.
by bubbleRefuge 15y ago
You don't know the half of it! Huge pension funds such as CALPERs, the california public pension fund, invest large sums (go long) passive commodity instruments such as oil and agriculture. These pension funds are insured by the federal g
392.
by bubbleRefuge 15y ago
Disagree. The fed does not devalue currency. They set interest rate policy on reserves aka the federal funds rate. Biggest factor in supply and demand for a currency is fiscal policy. Second biggest factor is trade balance and the desirabi
393.
by bubbleRefuge 15y ago
You are not alone and you are correct. Politicians take these abstract deficit numbers and use words like "unsustainable", and "our grandchildren are straddled with debt" to try to make them meaningful when they are not. What is the diffe
394.
by bubbleRefuge 15y ago
We are not the ones saddled with paying it off. This is the biggest myth in Politics today. Government bond transactions are settled in us dollar reserves. Reserves come from government spending. That's the only place they come from. As
395.
by bubbleRefuge 15y ago
You have to define what printing money means? The term doesn't apply to modern fiat money. And naturally I should define what modern fiat money is. But in a broad sense the government should continue issuing currency( by increasing spend
396.
by bubbleRefuge 15y ago
Right, and those national government banks do not have credible deposit insurance for national banks. So a bank run is possible. During the US crisis in 08/09 we had the Fed/Treasury complex insuring deposits and supplying liquidity which t
397.
by bubbleRefuge 15y ago
I think its a good possibility. Germans feel they are subsidizing the Euro-Zone periphery countries. Now with the ECB having to continue to issue currency in exchange for bank liabilities and national government bank liabilities, Germany m
398.
by bubbleRefuge 15y ago
Was referring to aggregate demand and aggregate supply.
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by bubbleRefuge 15y ago
<i>Issuing currency is identically equal to inflation</i> No. There is demand pull inflation and cost push inflation. If you remember from econ, inflation or price level is the intersection of supply and demand curves.
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by bubbleRefuge 15y ago
Modern Monetary Theory reveals the entire premise of this issue to be false. The private sector does not fund the public sector in the way that most people believe. Non-convertible floating FX currency regimes (ie fiat money) such as the U
401.
by bubbleRefuge 15y ago
Its money taken out of circulation that could have otherwise been spend on consumption. Buying IBM stock in my IRA doesn't do much for the economy compared to taking the same funds and buying an IPAD or 100 happy meals.
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by bubbleRefuge 15y ago
Actually retirement accounts are demand leakages. For example quantity theory of money gives us MV=PY money * velocity = prices * quantity of goods/services produced. So if money is squirreled away in retirement accounts it is no longer
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by bubbleRefuge 15y ago
Having a free floating fx sovereign currency issuing regime such as the US,UK,Japan. The federal debt is equal to the private sector savings. Paying of the debt eliminates our savings. This would throw us into great depression ii. We sho
404.
by bubbleRefuge 15y ago
You are absolutely correct here. When people have more money they tend to spend more and sales at corporations increase and thus the invest and hire more employees to meet the increased demand. How do we get more money in hand? Full payro
405.
by bubbleRefuge 15y ago
Federal interest rates will not go up because interest rates are controlled endogenously. They will go wherever the fed wants them to go.
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by bubbleRefuge 15y ago
This is a non-issue and further proof of the incompetency and worthlessness of Wall Street. The ratings agencies are out of macro-economic paradigm. The US federal government can meet any and all financial USD obligations because it is an