05-09-2016, 09:17 PM
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#91
Originally Posted By Malversation⏩
K dumbass. Here's what you said.Strong knowledge on what monetary velocity is, shown in this post. You do realize I was saying that the reason why the increase in m2 (monetary supply) didn't result in inflation is because the money wasn't actively being used/circulated, right?
Paying back the actual debt (all of it) via money printing would put that money in circulation as opposed to just interest sitting at the Fed thus causing actual inflation.
Fed buys 2 trillion of treasuries from US Banks.How does that put money into circulation?
Edit: just to help you, it doesn't
05-09-2016, 09:21 PM
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#92
And because I hate edits after I post, I'll make a new post.
The Fed buying treasuries does not put money into circulation like you said it would. If the cash is sitting at the fed on a computer screen or at the bank on their computer screen, nothing has changed.
Money gets into the economy via loans. The government could cut taxes and print money to cover the deficit and that would be similar as well
The Fed buying treasuries does not put money into circulation like you said it would. If the cash is sitting at the fed on a computer screen or at the bank on their computer screen, nothing has changed.
Money gets into the economy via loans. The government could cut taxes and print money to cover the deficit and that would be similar as well
05-09-2016, 09:25 PM
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#93
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Originally Posted By EboBebo⏩
Strong comprehension skills bro.K dumbass. Here's what you said.
Fed buys 2 trillion of treasuries from US Banks.
How does that put money into circulation?
Fed buys 2 trillion of treasuries from US Banks.
How does that put money into circulation?
The reason why this didn't actually hit anything is because, the m2 created didn't suffice with a decently high MZM Velocity. Which means the money isn't being used..
In simplistic terms for you, the money isn't being actively circulated so its not causing any inflation. What I did say regarding inflation via printing press was this:Paying back the actual debt (all of it) via money printing would put that money in circulation as opposed to just interest sitting at the Fed thus causing actual inflation.
Here's what you're not getting. I said: paying back the debt via money printing would put that money in circulation. UNLIKE the situation with the Fed where it's sitting in the vault. Do you even read?
05-09-2016, 09:29 PM
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#94
Originally Posted By Malversation⏩
You don't seem to know what circulation is.Strong comprehension skills bro.
In simplistic terms for you, the money isn't being actively circulated so its not causing any inflation. What I did say regarding inflation was this:
Here's what you're not getting. I said: paying back the debt via money printing would put that money in circulation. UNLIKE the situation with the Fed where it's sitting in the vault. Do you even read?
In simplistic terms for you, the money isn't being actively circulated so its not causing any inflation. What I did say regarding inflation was this:
Here's what you're not getting. I said: paying back the debt via money printing would put that money in circulation. UNLIKE the situation with the Fed where it's sitting in the vault. Do you even read?
Just because the cash is sitting on the banks balance sheet doesn't mean it's in circulation. There need to be LOANS. If the bank sits on two trillion cash or two trillion treasuries it's no ****ing difference. There is no money moving in the economy to hyper inflate. It's sitting there.
The banks have to LOAN money. Just think of why home prices rocketed in 2005. Was the fed buying treasuries like gang busters? No. Banks were LOANING money against housing. Massive increases of leverage increases prices [inflation].
Without banks lending or the government simply depositing money into your account there is no inflation. How the **** are you gonna spend two trillion cash of the bank's money?
05-09-2016, 09:31 PM
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#95
- Ayudha
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Originally Posted By gunshow101⏩
Google "how the world views DT" Them ^ and everyone one elsewho is laughing? angela merkel? sweden? putin? cuck trudeau?
just LOL
just LOL
.Bonecrshr #3
It is hard enough to remember my opinions, without also remembering my reasons for them
05-09-2016, 09:32 PM
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#96
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Originally Posted By EboBebo⏩
You don't seem to know what circulation is.
Just because the cash is sitting on the banks balance sheet doesn't mean it's in circulation. There need to be LOANS. If the bank sits on two trillion cash or two trillion treasuries it's not ****ing difference. There is no money moving in the economy to hyper inflate. It's sitting there.
The banks have to LOAN money. Just think of why home prices rocketed in 2005. Was the fed buying treasuries like gang busters? No. Banks were LOANING money against housing. Massive increases of leverage increases prices [inflation].
Without banks lending or the government simply depositing money into your account there is no inflation. How the **** are you gonna spend two trillion cash of the bank's money?
Just because the cash is sitting on the banks balance sheet doesn't mean it's in circulation. There need to be LOANS. If the bank sits on two trillion cash or two trillion treasuries it's not ****ing difference. There is no money moving in the economy to hyper inflate. It's sitting there.
The banks have to LOAN money. Just think of why home prices rocketed in 2005. Was the fed buying treasuries like gang busters? No. Banks were LOANING money against housing. Massive increases of leverage increases prices [inflation].
Without banks lending or the government simply depositing money into your account there is no inflation. How the **** are you gonna spend two trillion cash of the bank's money?
paying back the debt viamoney printingwould put that money in circulation.UNLIKE the situation with the Fed where it's sitting in the vault.
Read and re-read until you realize that I said for the second time the massive amount of money created hasn't resulted in inflation because, it's not being circulated. Unlike the situation where paying back all our creditors via m2 increase would result inflation as it's not just sitting in a bank vault. I will refuse to respond to you further till you get that through your head.
05-09-2016, 09:34 PM
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#97
Originally Posted By Malversation⏩
Chinese government gets $1 trillion cash instead of $1 trillion treasuries.Read and re-read until you realize that I said for the second time the massive amount of money created hasn't resulted in inflation because, it's not being circulated. Unlike the situation where paying back all our creditors via m2 increase would result inflation as it's not just sitting in a bank vault. I will refuse to respond to you further till you get that through your head.
How has that created inflation?
Also, you keep saying the fed vault. It doesn't matter if it's in a bank vault or fed vault. If it's not in the hand of people who can spend it then nothing will happen. Regular people need to hold the currency to spend it because if rich people hoard it, banks hoard it, or governments hoard it, nothing happens.
05-09-2016, 09:35 PM
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#98
- Shortstop36
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Saying Trump is an ignorant cuck. oh the irony
Red Sox 2018 MLB champs
Tommy 12 inch crew
Nikola Jokic, Montrezl truther
DRuss gonna be an all-star in BKNY crew
Jaylen, Jayson (7/11) Crew
Gordon Chadward Crew
05-09-2016, 09:38 PM
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#99
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Well that seems easy enough. Lets just print $20 trillion and pay off the Chinese. What could possibly go wrong.
Take me to Band Camp, where the real Miscers are.
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Team Mallory.
05-09-2016, 09:38 PM
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#100
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Originally Posted By EboBebo⏩
if 13.699mln * 1,000,000 just suddenly became liquid to private individuals within the USA you don't think that'd cause any inflation? Also the money coming back to the USA could easily help cause inflation.Chinese government gets $1 trillion cash instead of $1 trillion treasuries.
How has that created inflation?
How has that created inflation?
05-09-2016, 09:39 PM
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#101
- WookinPaNub
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Can't wait for butthurt to flow like a mighty river when he is sworn in.


05-09-2016, 09:40 PM
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#102
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Originally Posted By Kalmah6661⏩
Trump's Net Worth is 4 billion. How the **** is a man with multiple successful companies be worth that much and stupid? Thats right, moron, hes not.The Misc is full of retarded Conservatives, OP.
You'll never be able to explain how stupid Trump is to them.
You'll never be able to explain how stupid Trump is to them.
05-09-2016, 09:43 PM
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#103
Originally Posted By Malversation⏩
Treasuries are the most liquid security in the world. A bank could pledge it's treasuries at almost face value and get cash. The Chinese government could do the same. All you've removed is the intermediary by giving them cash.if 13.699mln * 1,000,000 just suddenly became liquid to private individuals within the USA you don't think that'd cause any inflation? Also the money coming back to the USA could easily help cause inflation.
http://www.bloomberg.com/news/articl...trillion-hoard
Photographer: Robert Caplin/Bloomberg
U.S. Banks Hoard $2 Trillion of Ultra-Safe Bonds
Edit: the world is awash in liquidity.
05-09-2016, 09:46 PM
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#104
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Originally Posted By EboBebo⏩
If you honestly think we can just print a bunch of cash to pay off our creditors and have 0 inflation I recommend you take a look at this here weimar germany who tried the same exact thing.Treasuries are the most liquid security in the world. A bank could pledge it's treasuries at almost face value and get cash. The Chinese government could do the same. All you've removed is the intermediary by giving them cash.
http://www.bloomberg.com/news/articl...trillion-hoard
Photographer: Robert Caplin/Bloomberg
U.S. Banks Hoard $2 Trillion of Ultra-Safe Bonds
http://www.bloomberg.com/news/articl...trillion-hoard
Photographer: Robert Caplin/Bloomberg
U.S. Banks Hoard $2 Trillion of Ultra-Safe Bonds
05-09-2016, 09:47 PM
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#105
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he's right actually. Trump is a MAD MAN and willing to crash both parties WITH NO SURVIVORS.
better than pandering to China
better than pandering to China
05-09-2016, 09:51 PM
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#106
Originally Posted By Malversation⏩
Germany's productive capacity was destroyed in the war and the government was giving money directly to people. Unless the money gets into people's hands, which is why the phrase helicopter money is the new buzz word, nothing will happen.If you honestly think we can just print a bunch of cash to pay off our creditors and have 0 inflation I recommend you take a look at this here weimar germany who tried the same exact thing.
Get worried about inflation when the government begins giving people serious money directly to people.
https://en.m.wikipedia.org/wiki/Pushing_on_a_string
05-09-2016, 09:51 PM
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#107
- Lpenny
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I say we just invade everyone that we owe money to
Easy fix!
Also doesn't the Federal Reserve own most of the debt? I'm sure the Federal Reserve of the USA will forclose on the U.S. Government.
Easy fix!
Also doesn't the Federal Reserve own most of the debt? I'm sure the Federal Reserve of the USA will forclose on the U.S. Government.
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05-09-2016, 09:58 PM
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#108
Originally Posted By EboBebo⏩
Just to quote how important this is for people to understand how money is created and distributed to an economy, read this."Pushing on a string" is particularly used to illustrate limitations of monetary policy, particularly that the money multiplier is an inequality, a limit on money creation, not an equality.
In modern economies with fractional-reserve banking, money creation follows a two-stage process. First, a central bank introduces new base money into the economy (termed 'expansionary monetary policy') by purchasing financial assets from or lending money to financial institutions. Second, the new money introduced by the central bank is multiplied by commercial banks through fractional reserve banking; this expands the amount of broad money (i.e. cash plus demand deposits) in the economy so that it is a multiple (known as the money multiplier) of the amount originally created by the central bank. Money is in essence pushed from central banks to commercial banks, and then to borrowers. This is the crux of the "pushing on a string" metaphor โ that money cannot be pushed from the central bank to borrowers if they do not wish to borrow.
If money isn't lent out, nothing happens. It's why the government bailed out the banks. Because without banks new money can't get to the economy.In modern economies with fractional-reserve banking, money creation follows a two-stage process. First, a central bank introduces new base money into the economy (termed 'expansionary monetary policy') by purchasing financial assets from or lending money to financial institutions. Second, the new money introduced by the central bank is multiplied by commercial banks through fractional reserve banking; this expands the amount of broad money (i.e. cash plus demand deposits) in the economy so that it is a multiple (known as the money multiplier) of the amount originally created by the central bank. Money is in essence pushed from central banks to commercial banks, and then to borrowers. This is the crux of the "pushing on a string" metaphor โ that money cannot be pushed from the central bank to borrowers if they do not wish to borrow.
But you know what is inflationary? Cutting your middle class taxes and financing it with deficits funded by money creation. In that sense, the government has bypassed the banks to get money into the economy.
05-09-2016, 10:02 PM
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#109
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Originally Posted By EboBebo⏩
If you honestly think we can just print 18 trillion and nobody will use them (like in the case in the Fed) I think you've some other news coming. The Chinese government will certainly use this money to buy goods (like aircraft carriers) the international community (aka the world's governments) doesn't get much out of the deal if they just don't use the money they've received and let it rot. New products will be recieved and individuals will also get some of this money, there's about a 0% chance none of this money is used ever.Germany's productive capacity was destroyed in the war and the government was giving money directly to people. Unless the money gets into people's hands, which is why the phrase helicopter money is the new buzz word, nothing will happen.
Get worried about inflation when the government begins giving people serious money directly to people.
https://en.m.wikipedia.org/wiki/Pushing_on_a_string
Get worried about inflation when the government begins giving people serious money directly to people.
https://en.m.wikipedia.org/wiki/Pushing_on_a_string
The dollar will be seen as less valuable and rightfully so as the money will be used.
05-09-2016, 10:02 PM
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#110
05-09-2016, 10:05 PM
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#111
05-09-2016, 10:11 PM
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#112
Originally Posted By Malversation⏩
$1 trillion at 1% = $10 billion. That hardly seems fair considering their holdings. Hell, $1 trillion at 2% isn't **** at $20 billion. Would you hold $1 trillion and be happy getting 1%? Yet they do it. Europe is negative yields and where is the hyper inflation? Why would all the holders of European debt accept negative yields? It's lunacy yet they do it. Hell, all these credit holders should be happy we pay them cash, there's no negative yield! There will be no hyper inflation.If you honestly think we can just print 18 trillion and nobody will use them (like in the case in the Fed) I think you've some other news coming. The Chinese government will certainly use this money to buy goods (like aircraft carriers) the international community (aka the world's governments) doesn't get much out of the deal if they just don't use the money they've received and let it rot. New products will be recieved and individuals will also get some of this money, there's about a 0% chance none of this money is used ever.
The dollar will be seen as less valuable and rightfully so as the money will be used.
The dollar will be seen as less valuable and rightfully so as the money will be used.
In fact, everyone should be loading up on as much debt as possible that can be serviced right now. US spreads to German bunds is insane. US economic growth has stalled. Do you think the fed will raise rates at 0% growth?
Go to bankrate.com and check on Mortgage rates. I can get a 3.125% VA loan. When I first bought it in 2014 was 3.75%. Give it two years of lackluster or no growth and I'll have a sub 3% 30 year mortgage.
05-09-2016, 10:17 PM
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#113
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05-09-2016, 10:17 PM
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#114
- MyBaddBrah
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Originally Posted By Lpenny⏩
Stats: 6'2'' , 305 lbsI saywejust invade everyone that we owe money to
The only invading you'll be doing is to your refrigerator
*Hole is Life Crew*
*Meditation Crew*
05-09-2016, 10:22 PM
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#115
- Lpenny
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Originally Posted By MyBaddBrah⏩
Are you calling me fat!?Stats: 6'2'' , 305 lbs
The only invading you'll be doing is to your refrigerator
The only invading you'll be doing is to your refrigerator
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05-09-2016, 10:23 PM
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#116
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That feel when liberal misc neckbeards think they know more about finance/economics than Trump.
Its like the one field he is an expert at
Its like the one field he is an expert at
Follows Chestbrah's training routine crew
05-09-2016, 10:25 PM
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#117
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Originally Posted By freekid2002⏩
America is not exactly known in recent history to elect particularly intelligent presidents. Nothing to see here, business as usual.I never paid much attention to this guy but I just lost it when i saw this
http://edition.cnn.com/2016/05/09/po...inkId=24281059
Does this fat fuk even have a brain? Holy fuking ****. How can anyone support this ignorant cuck?
http://edition.cnn.com/2016/05/09/po...inkId=24281059
Does this fat fuk even have a brain? Holy fuking ****. How can anyone support this ignorant cuck?
Miscing since 2006; miscing until I'm dead.
05-09-2016, 10:32 PM
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#118
Originally Posted By CHARBACK⏩
Everyone else in the world with an ivy league education in Econ. thought his idea two days ago of renegotiating and defaulting was batchit insane and would destroy the world economy.. 2 days later thats not what he really meant.. he really meant they will just print money ..oh my. Trump doesn't care what he says, he says anything and then the exact opposite or something even crazier the very next day and you dummies keep praising him. .. and his "ivy league education" is a bachelors degree.. oooooooooooohhhhhhhh. maybe thats impressive if you worked at a gas station.He has an Ivy league education in Econ. Read through all of what he said, it all makes sense.
Please explain how he is inept and blundering.
Please explain how he is inept and blundering.
05-09-2016, 10:41 PM
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#119
05-09-2016, 10:52 PM
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#120
Originally Posted By KingSWRV⏩
ITT people think someone that was born rich given his dads company then became a tv star = "one of the most successful business magnates of our time"ITT:
ppl who took Econ 101 in HS and think they know some basic facts that one of the most successful business magnates of our time doesn't.
ppl who took Econ 101 in HS and think they know some basic facts that one of the most successful business magnates of our time doesn't.

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