Bruddah IZ
DA
Something about a fiduciary responsibility was it? Be careful the industry that wants to regulate itself.
Essential Economics for Politicians
- Thread starter Bruddah IZ
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- finance too
Wez
DA
Says the clueless Retardarian who is struggling financially.
Bruddah IZ
DA
Wez
DA
I suggest you ditch libertarianism, your broken Cult that works against The Working Man.
Bruddah IZ
DA
Wez
DA
Funny you use the word fiduciary as if it's deragatory.
Bruddah IZ
DA
Bruddah IZ
DA
The U.S. Government does not issue money. The Federal Reserve issues money to the Government by purchasing Government Treasury Bonds. This is no small point.
Bruddah IZ
DA
Interest rates are prices. They impart information. They tell a business person whether or not to undertake a certain capital investment. They measure financial risk. They translate the value of future cash flows into present-day dollars. Manipulate those prices — as central banks the world over compulsively do — and you distort information, therefore perception and judgment.
Interest rates ought to be discovered in the market, not administered from on high. They can’t do their essential work if someone, say a central bank, is muscling them around. Let’s get the central banks out of the business of using interest rates — and stock prices and exchange rates, too – as instruments of national policy. Today, investors live in a hall of mirrors: They don’t know which values are real and which are distorted by monetary manipulation. Market-determined rates will help restore clarity.--http://www.nationalreview.com/article/441128/james-grant-monetary-manipulation-must-end
Interest rates ought to be discovered in the market, not administered from on high. They can’t do their essential work if someone, say a central bank, is muscling them around. Let’s get the central banks out of the business of using interest rates — and stock prices and exchange rates, too – as instruments of national policy. Today, investors live in a hall of mirrors: They don’t know which values are real and which are distorted by monetary manipulation. Market-determined rates will help restore clarity.--http://www.nationalreview.com/article/441128/james-grant-monetary-manipulation-must-end
Bruddah IZ
DA
Six Things to Consider About Inflation
As an economic term, “inflation” is shorthand for “inflation of the money supply.”
The general public, however, usually takes it to mean “rising prices” which is not surprising since one of the common effects of an increase in the money supply is higher prices. However, supporters of government policy often say, “If quantitative easing (QE) and its terrible twin, fractional reserve banking, are so awful, why have we got no inflation?”
To address this conundrum, there are six related factors that are noteworthy:
https://mises.org/blog/six-things-consider-about-inflation
As an economic term, “inflation” is shorthand for “inflation of the money supply.”
The general public, however, usually takes it to mean “rising prices” which is not surprising since one of the common effects of an increase in the money supply is higher prices. However, supporters of government policy often say, “If quantitative easing (QE) and its terrible twin, fractional reserve banking, are so awful, why have we got no inflation?”
To address this conundrum, there are six related factors that are noteworthy:
https://mises.org/blog/six-things-consider-about-inflation
Bruddah IZ
DA
Number One: we need to be clear about the terms we are using. Instead of talking about “inflation” in the loose sense, as above, it is more accurate to speak of currency debasement, which is the real impact of fiat money creation by any means. We experience currency debasement as declining purchasing power. Two sides of the same coin: one reflects the other.
Number Two: the above question overlooks the fact that the measures used in this process are inherently unreliable. The decline in purchasing power is most evident when objectively measured by reference to an essential commodity such as oil — rather than against the Consumer Price Index (CPI). The CPI purports to reflect the prices of ingredients selected by government statisticians in what they consider to be a typical, but notional, basket of “consumer goods and services.” This basket, whose contents are varied periodically, results in an index that cannot be trusted as an objective barometer. It supports the wizardry of non-independent Treasury statisticians, and relates to goods that scarcely feature in your shopping basket or mine.
Blowing Bubbles
Number Three: newly created fiat money must go somewhere — and so it goes into the grasp of its first receivers, the banks, the financial institutions, government institutions, and urban moneyed classes who least need it — widening the gap between rich and poor — and thereby building asset bubbles in property, luxury cars, yachts and the myriad baubles that only the very rich can afford to acquire. So never say that “there is no price inflation” — it’s just that those asset prices don’t figure in the official CPI stats.
Number Four: The European Central Bank (ECB) is no slouch when it comes to money creation out of thin air, and banks within the euro zone have therefore come to rely on it for survival. The solvency of Southern EU countries is dependent on the promise of limitless — thanks to Mario “Whatever it takes” Draghi — fiat money bailouts from the ECB. But, until the next bailout arrives, governments of Europe will do their coercive best to prop up their insolvent banks by any means, fair or foul. In Italy, for example, the government has now “invited” the country’s pension funds to invest 500 million euros in a bank fund called “Atlante,” which has been formally set up as a buyer of last resort to help Italian lenders (whose bad debts equate to a fifth of GDP) reduce their toxic burden. Having run out of other people’s money the Italian government is now trying to raid the nation’s pension funds.
Number Five: In the same vein, you have no doubt heard reference to “helicopter money.” This is a variant of QE favored by certain politicians who talk blithely about the need for “QE for the people.” The idea is to by-pass the treasury mandarins by dropping newly printed money directly to the people via government spending, so that they (rather than the already-rich classes) can benefit from the bonanza and aid the economy by spending their new-found wealth. Again, this notion commits the fundamental error of equating “money” and “wealth.” If everyone suddenly finds that free handouts have swelled their bank accounts, how long will it be before prices follow? (And since even helicopter money originates at the central bank, you can be sure that the financial sector will somehow get its hands on it first anyway!)
Number Six: the final point concerns the corrosive effect of the deliberate and utterly misguided suppression of interest rates which, if they were allowed to find their own market level, would represent the time-value of money, or what the private sector is prepared to pay for liquidity — either for spending now or saving for future spending.
Number Two: the above question overlooks the fact that the measures used in this process are inherently unreliable. The decline in purchasing power is most evident when objectively measured by reference to an essential commodity such as oil — rather than against the Consumer Price Index (CPI). The CPI purports to reflect the prices of ingredients selected by government statisticians in what they consider to be a typical, but notional, basket of “consumer goods and services.” This basket, whose contents are varied periodically, results in an index that cannot be trusted as an objective barometer. It supports the wizardry of non-independent Treasury statisticians, and relates to goods that scarcely feature in your shopping basket or mine.
Blowing Bubbles
Number Three: newly created fiat money must go somewhere — and so it goes into the grasp of its first receivers, the banks, the financial institutions, government institutions, and urban moneyed classes who least need it — widening the gap between rich and poor — and thereby building asset bubbles in property, luxury cars, yachts and the myriad baubles that only the very rich can afford to acquire. So never say that “there is no price inflation” — it’s just that those asset prices don’t figure in the official CPI stats.
Number Four: The European Central Bank (ECB) is no slouch when it comes to money creation out of thin air, and banks within the euro zone have therefore come to rely on it for survival. The solvency of Southern EU countries is dependent on the promise of limitless — thanks to Mario “Whatever it takes” Draghi — fiat money bailouts from the ECB. But, until the next bailout arrives, governments of Europe will do their coercive best to prop up their insolvent banks by any means, fair or foul. In Italy, for example, the government has now “invited” the country’s pension funds to invest 500 million euros in a bank fund called “Atlante,” which has been formally set up as a buyer of last resort to help Italian lenders (whose bad debts equate to a fifth of GDP) reduce their toxic burden. Having run out of other people’s money the Italian government is now trying to raid the nation’s pension funds.
Number Five: In the same vein, you have no doubt heard reference to “helicopter money.” This is a variant of QE favored by certain politicians who talk blithely about the need for “QE for the people.” The idea is to by-pass the treasury mandarins by dropping newly printed money directly to the people via government spending, so that they (rather than the already-rich classes) can benefit from the bonanza and aid the economy by spending their new-found wealth. Again, this notion commits the fundamental error of equating “money” and “wealth.” If everyone suddenly finds that free handouts have swelled their bank accounts, how long will it be before prices follow? (And since even helicopter money originates at the central bank, you can be sure that the financial sector will somehow get its hands on it first anyway!)
Number Six: the final point concerns the corrosive effect of the deliberate and utterly misguided suppression of interest rates which, if they were allowed to find their own market level, would represent the time-value of money, or what the private sector is prepared to pay for liquidity — either for spending now or saving for future spending.
Bruddah IZ
DA
...the paper currency in your purse or wallet is a liability of the Federal Reserve, legally speaking. After all, these green pieces of paper have "Federal Reserve Note" written on them. This is an accounting fiction, of course, a throwback to the days when the notes were simply claims to actual gold or silver. It's hardly a liability to have billions of dollars in "claims" against the Federal Reserve floating around, when they are claims to nothing. (If you tried to present a $20 bill for redemption at a Federal Reserve Office, you would be able to get two $10 dollar bills, or four $5 dollar bills, but certainly no other type of asset.)--HPBRW
Bruddah IZ
DA
Just as a free press is necessary for a free citizenry, so too is sound money necessary for a free economy. All other aspects of what is meant by the term "economic freedom" in conventional circles--low tax rates, mild regulation, no trade barriers -- are a moot point if the government has a printing press at its disposal.
That is why education is the first and most important step--people need to understand the importance of sound money, and the dangers of fiat money and central banking
That is why education is the first and most important step--people need to understand the importance of sound money, and the dangers of fiat money and central banking
Bruddah IZ
DA
Budget Politics
"Back in my teaching days, many years ago, one of the things I liked to ask the class to consider was this, imagine a government agency with only two task. One, building statues of Benedict Arnold and two providing life saving medications to children. If this agency's budget were cut what would it do? The answer of course is that it would cut back on the medications for children. Why? Because that is what is most likely to get the budget restored. If they cut back on building statues of Benedict Arnold, people might ask why they were building statues of Benedict Arnold in the first place.-- Thomas Sowell. Who else?
"Back in my teaching days, many years ago, one of the things I liked to ask the class to consider was this, imagine a government agency with only two task. One, building statues of Benedict Arnold and two providing life saving medications to children. If this agency's budget were cut what would it do? The answer of course is that it would cut back on the medications for children. Why? Because that is what is most likely to get the budget restored. If they cut back on building statues of Benedict Arnold, people might ask why they were building statues of Benedict Arnold in the first place.-- Thomas Sowell. Who else?
Multi Sport
DA
What has Trump done that's racist? Pease don't say the temporary ban because if you do, you feel Obama, Bill Clinton, Hillary Clinton and Jimmy Carter are all racist. Don't say because of his stance on illegal immigrants, because again, the previous people all had the same views. Don't say it's about homosexuals, because he is the first President to enter office supporting gay marriage.
So now go ahead and tell me about this racism..
Multi Sport
DA
Are you?
Apparently you are.
Daniel Miller
SILVER ELITE
How about refusing to rent to "coloreds" and having been sued twice by the Dept. of Justice for his racist rental policies.
Sheriff Joe
DA
What was the outcome? Please hurry, I need to get back to the NAACP image awards.
Sheriff Joe
DA
I sure haven't seen any issues.