tag:blogger.com,1999:blog-5713178645208582139.post8976036446642350479..comments2024-03-22T02:37:15.030-05:00Comments on Macro Musings Blog: The Biggest Myth About the FedDavid Beckworthhttp://www.blogger.com/profile/04577612979801459194noreply@blogger.comBlogger33125tag:blogger.com,1999:blog-5713178645208582139.post-46150438920286747342013-05-13T21:37:59.582-05:002013-05-13T21:37:59.582-05:00Just ran across this article and I am sure I am no...Just ran across this article and I am sure I am not as bright as yall but isn't the fed just supporting our deficit spending through the purchase of treasuries. How is this not monetizing, is your argument that because it is portional and supposed to be temporary therefore not monetization? I think the whole think is just delaying the inevitable if they would have let market forces work we Anonymoushttps://www.blogger.com/profile/02459004549504544583noreply@blogger.comtag:blogger.com,1999:blog-5713178645208582139.post-76311117090190476492012-12-05T15:26:21.922-06:002012-12-05T15:26:21.922-06:00Hello,
If I look at 2011, I see a US budget defici...Hello,<br />If I look at 2011, I see a US budget deficit of 1.3 Tillion (T) & trade deficit 533 billion (B). So using the accounting identity government deficit spending = foreign savings + pvt sector savings, we can say the pvt sector in US lived 767B below its means in 2011. In fact this tells us that the US Gov accounted entirely for the trade deficit in 2011.<br /><br />We can assume thatAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-5713178645208582139.post-6790769491721300122012-12-01T13:34:11.354-06:002012-12-01T13:34:11.354-06:00Actually, instead of "quantity of bonds"...Actually, instead of "quantity of bonds", I should have said "percentage of bonds"Major_Freedomnoreply@blogger.comtag:blogger.com,1999:blog-5713178645208582139.post-11152995350992128152012-12-01T13:33:18.464-06:002012-12-01T13:33:18.464-06:00Debt monetization is not debt monetization based o...Debt monetization is not debt monetization based on the various effects it has on things like interest rates and price inflation, or quantity of bonds bought by the Fed. These are all arbitrary subjective criteria. One person may say that the existing interest rates and price inflation are higher than they otherwise would have been without the OMO, in which case to them the higher interest Major_Freedomnoreply@blogger.comtag:blogger.com,1999:blog-5713178645208582139.post-29633192516848207502012-11-29T01:26:32.789-06:002012-11-29T01:26:32.789-06:00http://www.goldmoney.com/documents/Howard_Buffett_...http://www.goldmoney.com/documents/Howard_Buffett_explains_money.pdfAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-5713178645208582139.post-23001446949224877732012-11-28T03:04:33.024-06:002012-11-28T03:04:33.024-06:00http://www.businessinsider.com/jon-stewart-ben-ber...http://www.businessinsider.com/jon-stewart-ben-bernanke-2010-12Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-5713178645208582139.post-33992533539609593612012-11-28T00:07:12.711-06:002012-11-28T00:07:12.711-06:00Your being complimented when they slapping the zer...Your being complimented when they slapping the zero hedge label on you!Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-5713178645208582139.post-75351262372132799242012-11-26T10:48:28.316-06:002012-11-26T10:48:28.316-06:00Thanks ChargerCarl. Yes the Zero Hedges have arri...Thanks ChargerCarl. Yes the Zero Hedges have arrived. Here's hoping they look at the facts laid out in the post.David Beckworthhttps://www.blogger.com/profile/04577612979801459194noreply@blogger.comtag:blogger.com,1999:blog-5713178645208582139.post-69181523414253957772012-11-25T22:38:04.897-06:002012-11-25T22:38:04.897-06:00the zero hedge crazies have arrived!
Don't ha...the zero hedge crazies have arrived!<br /><br />Don't have anything to add, but I've been a big fan of this blog for a while. Just wanted to say thanks and keep up the good work.ChargerCarlhttps://www.blogger.com/profile/12273242389934305333noreply@blogger.comtag:blogger.com,1999:blog-5713178645208582139.post-10104019339360044772012-11-25T22:37:08.663-06:002012-11-25T22:37:08.663-06:00This comment has been removed by the author.ChargerCarlhttps://www.blogger.com/profile/12273242389934305333noreply@blogger.comtag:blogger.com,1999:blog-5713178645208582139.post-60396290179493093592012-11-25T22:13:15.572-06:002012-11-25T22:13:15.572-06:00How much money has the fed digitally printed since...How much money has the fed digitally printed since the start of this downturn?Trillions.Fanny/Freddie/AIG/Companies and banks around the globe.Hold the rates to zero and screw all the honest people who save their work hours for use when needed(retirement).Too big to fail,make them even bigger.The fed wants transparency(LOL).Lots of fancy names for all those hidden fed programs.<br />This thing isAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-5713178645208582139.post-77055572796475513762012-11-25T19:26:06.127-06:002012-11-25T19:26:06.127-06:00I cannot believe I am reading this moronic drivel....I cannot believe I am reading this moronic drivel. <br /><br />If the Fed buying treasuries is not monetization, then let the Treasury sell $100 Trillion dollars to the Fed. The Treasury can then buy every share on every stock market and all buildings/lots/property too. <br /><br />The simple fact is that the USA has military power, and this is why the pointy-headed professors discount Fed Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-5713178645208582139.post-35597750336197154102012-11-25T17:42:53.204-06:002012-11-25T17:42:53.204-06:00The point is the Fed is monetizing the treasury de...The point is the Fed is monetizing the treasury debt directly and indirectly. They're purchasing long-term treasuries per Operation Twist. They've been providing the banks with interest-free loans for up to 3 years to purchase debts with duration < 3 years to hold risk-free till maturity.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-5713178645208582139.post-64152049590105445922012-11-23T10:40:29.829-06:002012-11-23T10:40:29.829-06:00Aha, I crossed wires a bit speaking about ownershi...Aha, I crossed wires a bit speaking about ownership portion of US debt, vs. marketable securities in that chart, but agree that the long term outlook for US and developed country debt worldwide is unsustainable (and why not throw in resource dependent growth) - and as you say 'a serious debt problem'.<br /><br />I think regarding marketable US securities holdings, it's also good to SeattleBrucenoreply@blogger.comtag:blogger.com,1999:blog-5713178645208582139.post-41999818232378680672012-11-22T06:38:07.222-06:002012-11-22T06:38:07.222-06:00SeattleBruce, when discussing debt monetization it...SeattleBruce, when discussing debt monetization it is best to talk about marketable treasuries not all public debt as you have done in the first graph. When you do this you get about 30% to individuals and their financial intermediaries, 15% to the Fed, 49% to foreigners, about 5% to state and local governments, and 1% all else. <br /><br />It is important to note that not all the foreign David Beckworthnoreply@blogger.comtag:blogger.com,1999:blog-5713178645208582139.post-68433580988370941812012-11-22T05:50:42.803-06:002012-11-22T05:50:42.803-06:00Great information shared by you, thanks for the up...Great information shared by you, thanks for the update.<br /><br /><a href="http://www.profit.biz/Static/MCXDetails.aspx" rel="nofollow">MCX Tips</a><br /><a href="http://www.profit.biz/" rel="nofollow">Commodity Tips</a>profit.bizhttps://www.blogger.com/profile/05951856083434322430noreply@blogger.comtag:blogger.com,1999:blog-5713178645208582139.post-12169057742404520692012-11-21T21:46:50.516-06:002012-11-21T21:46:50.516-06:00Regardless of how we define monetization, I think ...Regardless of how we define monetization, I think we can do better than asset purchases when it comes to achieving our monetary targets:<br /><br />http://catalystofgrowth.com/2012/11/21/printing-money-and-the-mass-hysteria-that-comes-with-it/<br /><br />Would love to hear thoughts on this post.DOBhttp://catalystofgrowth.com/noreply@blogger.comtag:blogger.com,1999:blog-5713178645208582139.post-85291799206878207742012-11-21T15:43:34.222-06:002012-11-21T15:43:34.222-06:00Considering your charts above are percentages of m...Considering your charts above are percentages of marketable US securities held by the Fed, it may be instructive to observe a chart that shows the breakdown of which entities purchase/own portions of these securities back to back to 1975. Does this look sustainable? Furthermore, look at how much of this massive mountain is owned by the Fed, other Federal agencies, Social Security, state and SeattleBrucenoreply@blogger.comtag:blogger.com,1999:blog-5713178645208582139.post-77179976652454719532012-11-21T09:15:06.480-06:002012-11-21T09:15:06.480-06:00Warren Mosler on monetization
http://www.mosler.o...Warren Mosler on monetization<br /><br />http://www.mosler.org/docs/docs/soft0004.htm<br /><br />The Myth of Debt Monetization<br /><br />The subject of debt monetization frequently enters discussions of monetary policy. Debt monetization is usually referred to as a process whereby the Fed buys government bonds directly from the Treasury. In other words, the federal government borrows money from mcwopnoreply@blogger.comtag:blogger.com,1999:blog-5713178645208582139.post-18958970001067202122012-11-21T02:33:17.809-06:002012-11-21T02:33:17.809-06:00Not even the Cato Institute believes in ratex, app...Not even the Cato Institute believes in ratex, apparently.Saturoshttps://www.blogger.com/profile/01914831276101897944noreply@blogger.comtag:blogger.com,1999:blog-5713178645208582139.post-10177191835341815922012-11-20T23:27:25.791-06:002012-11-20T23:27:25.791-06:00The FED doesn't want a run on the dollar like ...The FED doesn't want a run on the dollar like the late 70's. It was the reason why they "waited" until the crisis got so bad to do something. They could have averted it entirely if they had acted in August of 2007 when the crisis really began to balloon. But they waited, through the winter, spring and summer. <br /><br />The economy finally crashed in the fall of September 2008,Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-5713178645208582139.post-19487077203320029852012-11-20T21:48:49.982-06:002012-11-20T21:48:49.982-06:00Aha! I sent it to an old yahoo address. Resending....Aha! I sent it to an old yahoo address. Resending.JP Koninghttps://www.blogger.com/profile/02559687323828006535noreply@blogger.comtag:blogger.com,1999:blog-5713178645208582139.post-49240924873720697472012-11-20T21:30:46.600-06:002012-11-20T21:30:46.600-06:00Again, your enthusiasm and energy amaze me Ben. Yo...Again, your enthusiasm and energy amaze me Ben. You are the Energizer Bunny of monetization!David Beckworthhttps://www.blogger.com/profile/04577612979801459194noreply@blogger.comtag:blogger.com,1999:blog-5713178645208582139.post-14157907018739987762012-11-20T21:29:18.725-06:002012-11-20T21:29:18.725-06:00Gloeschi, how is the Fed the key enabler? On what...Gloeschi, how is the Fed the key enabler? On what basis do you make this claim? <br /><br /><br />The other 85% are <i>not</i> mostly other central banks. Foreign holdings is at about 48% (down from 51% in 2008), of which only some are foreign central banks. Others include private foreign investors reaching for safe assets. <br /><br />U.S. financial intermediaries (banks, pension companies, David Beckworthhttps://www.blogger.com/profile/04577612979801459194noreply@blogger.comtag:blogger.com,1999:blog-5713178645208582139.post-64817221304687724732012-11-20T21:18:49.573-06:002012-11-20T21:18:49.573-06:00JP Koning, great points. Yes, at least the threat ...JP Koning, great points. Yes, at least the <i>threat</i> of some monetization is implicit in Market Monetarism. And should the threat work then the actual amount of monetization should be minimal. <br /><br />I did not get your email. Did you send it to my david.beckworth@gmail.com address?David Beckworthhttps://www.blogger.com/profile/04577612979801459194noreply@blogger.com