tag:blogger.com,1999:blog-11719208.post116234906650489003..comments2023-11-05T04:36:14.223-08:00Comments on The Mess That Greenspan Made: This is Tightening?Timhttp://www.blogger.com/profile/16530974968126497397noreply@blogger.comBlogger8125tag:blogger.com,1999:blog-11719208.post-1163889439066769992006-11-18T14:37:00.000-08:002006-11-18T14:37:00.000-08:00Velocity is very important when determining money ...Velocity is very important when determining money in the system , not just the total amount .... M3 was abolished because it was never a good indicator , as opposed to the dopey conspiracy theorys bandied about by perma-bears and perma-dimwits .... MZM was always the better figure , and is still followed by the St. Louis Fed , still the most monetarist and important branch of the systemAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-11719208.post-1162427039818060332006-11-01T16:23:00.000-08:002006-11-01T16:23:00.000-08:00Changes in the money supply reflect the difference...Changes in the money supply reflect the difference between what would be market rates and the Fed's target rates. If the market wants 10% and the Fed target is 5%, they have to pump in money. If the market wants zero and the target is 5%, they need to withdraw money. The Fed is market neutral when money supply changes are nil.<BR/><BR/>Right now, the target is 5.25% and M3 growth is 10%. The target rate is far from neutral.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-11719208.post-1162424960371170642006-11-01T15:49:00.000-08:002006-11-01T15:49:00.000-08:00I think the Fed is surely the worst of the lot. T...I think the Fed is surely the worst of the lot. Their devaluation of the reserve currency is forcing all the rest to follow. Of course at some point, someone will need to bring back gold backing in order to restore confidence.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-11719208.post-1162421920407431972006-11-01T14:58:00.001-08:002006-11-01T14:58:00.001-08:00Aaron,I'll have to take another look at those link...Aaron,<BR/><BR/>I'll have to take another look at those links. I was mostly interested in the last few years - to see if there has been any impact at all - but in looking at data going back to the 1970s, it's striking how things changed in the mid 1990s.Timhttps://www.blogger.com/profile/16530974968126497397noreply@blogger.comtag:blogger.com,1999:blog-11719208.post-1162416205178935892006-11-01T13:23:00.000-08:002006-11-01T13:23:00.000-08:00Tim,The key change in the mid-90s effecting what y...Tim,<BR/><BR/>The key change in the mid-90s effecting what you've observed is that <A HREF="http://www.itulip.com/forums/showthread.php?t=292" REL="nofollow">banks were effectively freed from the reserve fraction requirement</A> (I've now discovered that Hussman noted this at least five years ago; I am not alone in this observation.)<BR/><BR/>This allowed the genesis of the "ponzi finance" era (as Russ Winter would put it): interest rates going up? No problem -- just create more debt-money for everyone to service to keep bank income growing.<BR/><BR/>The Fed is now powerless to do something like China did recently (increase their reserve requirement); we are now so dependent on not having any such restriction, reinstating it would instantly crash the economy, far more severely than the Great Depression.<BR/><BR/>[Sidebar: the bond market was <A HREF="http://www.autodogmatic.com/index.php/sst/2006/10/08/this_is_not_the_same_bond_market_that_ex_1995" REL="nofollow">also fundamentally changed around the same time</A>, essentially inverting in behavior in a way that tends to inflate the financial economy. The "new" financial economy we have now is dramatically different than the one before the early 90s, and it seems only a handful of people realize this.]Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-11719208.post-1162401343802255612006-11-01T09:15:00.000-08:002006-11-01T09:15:00.000-08:00Monarchs have been parted from their heads for jus...Monarchs have been parted from their heads for just such policies.L'Emmerdeurhttps://www.blogger.com/profile/03004040303058104490noreply@blogger.comtag:blogger.com,1999:blog-11719208.post-1162398659840645892006-11-01T08:30:00.000-08:002006-11-01T08:30:00.000-08:00The uranium spot price was $60.25 yesterday - see ...The uranium spot price was $60.25 yesterday - see http://www.uranium.info/Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-11719208.post-1162398356544734832006-11-01T08:25:00.000-08:002006-11-01T08:25:00.000-08:00hello tim,the whole rethoric is really a farce.but...hello tim,<BR/><BR/>the whole rethoric is really a farce.<BR/><BR/>but to be honest. the other cental banks are not better than the fed.<BR/><BR/>money supply is running wild! <BR/><BR/>http://immobilienblasen.blogspot.com/2006/10/money-supply-is-running-wild.html<BR/><BR/>the main difference is that at least some admit that money supply is a danger. the only that denies this is the fed. (see link)jmfhttps://www.blogger.com/profile/07573793835441139826noreply@blogger.com