tag:blogger.com,1999:blog-11719208.post2400755149334776258..comments2023-11-05T04:36:14.223-08:00Comments on The Mess That Greenspan Made: "End the Fed" legislation reintroducedTimhttp://www.blogger.com/profile/16530974968126497397noreply@blogger.comBlogger14125tag:blogger.com,1999:blog-11719208.post-48950711349875594732009-02-07T20:12:00.000-08:002009-02-07T20:12:00.000-08:00Yes... the Fed has issues. I think Ron Paul's sto...Yes... the Fed has issues. I think Ron Paul's stock will rise as this crisis crushes the American Economy.<BR/><BR/><A HREF="http://wreconomics.blogspot.com" REL="nofollow">Wreconomics</A>Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-11719208.post-61010562479048622562009-02-06T21:00:00.000-08:002009-02-06T21:00:00.000-08:00Don't worry the senators don't really care they ar...Don't worry the senators don't really care they aren't in any hurry to help, they have the best health care and are well payed, "Let them eat cake"Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-11719208.post-45378707273782245012009-02-06T08:59:00.000-08:002009-02-06T08:59:00.000-08:00I read the Keen article again this morning and com...I read the Keen article again this morning and come away less impressed the closer I look (it's interesting to read some of the comments, as if they're really saying, "The emporer's clothes are lovely, aren't they?). <BR/><BR/>In digging into that first chart, wondering how any self-respecting analyst could provide legends "Fiat Money Injection", "Total Credit Money & Loans", and "Total Money" while citing no sources, the closest reference [3] was tracked down in hopes of getting to the source data and, lo and behold, this is a paper written in 1990 by one of the daffiest economists of our time - Edward Prescott. See <A HREF="http://themessthatgreenspanmade.blogspot.com/2006/12/unmeasured-savings.html" REL="nofollow">Unmeasured Savings</A>.<BR/><BR/>There are many other aspects of this paper that fall apart quickly upon further scrutiny, but I have better things to do.Timhttps://www.blogger.com/profile/16530974968126497397noreply@blogger.comtag:blogger.com,1999:blog-11719208.post-445492776483768702009-02-05T23:09:00.000-08:002009-02-05T23:09:00.000-08:00Thanks for the link, Anon, I just listened to it, ...Thanks for the link, Anon, I just listened to it, but Turk does not school Mish on that subject.<BR/><BR/>You can define deflation away, by claiming it is only a measure of money, or you can look at reality, and see that what he calls "wealth destruction" IS deflation, in action. <BR/><BR/>Mish is factually correct: all debt bubbles historically have ended in deflation. Japan went through deflation, even though their monetary supply did not shrink. <BR/><BR/>Mish nails it: money supply can expand, all in the balance sheets of banks, while the real economy deflates. <BR/><BR/>Banks don't want to give, and consumers don't want to take on, loans in a deflationary period (because loans are guaranteed losers)! <BR/><BR/>The black hole of deflation will suck everything in until debt and excess inventory are liquidated.<BR/><BR/>The only solution is to cancel the debt itself, starting, at the bare minimum, with massive amounts of mortgage debt -- to stop the core housing deflation which is driving the rest.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-11719208.post-50418389509706863132009-02-05T21:33:00.000-08:002009-02-05T21:33:00.000-08:00I have been thru that Steve Keen piece and, like m...I have been thru that Steve Keen piece and, like many other deflationists, he confuses money and credit (horribly, actually). If you want to understand this issue better (i.e., how you can convince yourself of almost anything once you confuse the two), listen to this interview where James Turk takes Mish to school on the subject - http://commoditywatch.podbean.com/2008/08/24/inflation-or-deflation-part-1/. Tim brought this interview to my attention last year and it has helped me understand the issues better.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-11719208.post-69545483502604779562009-02-05T13:52:00.000-08:002009-02-05T13:52:00.000-08:00Tim,There aren't any unnecessary bank runs. A run...Tim,<BR/><BR/>There aren't any unnecessary bank runs. A run happens when the fraud of issuing claims against non-existent assets is revealed. This is a normal and healthy process whereby the fraudsters are eliminated. A central bank just allows the fraud to be conducted on a larger scale.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-11719208.post-34217438811901439532009-02-05T13:19:00.000-08:002009-02-05T13:19:00.000-08:00@ how screwed are we??Yes, that is indeed a hyperl...@ how screwed are we??<BR/><BR/>Yes, that is indeed a hyperlink.Danhttps://www.blogger.com/profile/14611189349119964821noreply@blogger.comtag:blogger.com,1999:blog-11719208.post-22600018747269194862009-02-05T12:49:00.000-08:002009-02-05T12:49:00.000-08:00I went through The Roving Cavaliers of Credit. It'...I went through The Roving Cavaliers of Credit. It's interesting but, after the first time through, it strikes me as one of the many arguments today that "the debt is really, really big this time - way too big for the Fed to fix it", not appreciating what our elected leaders and the Fed are capable of doing. I plan to look at it some more.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-11719208.post-79324716772538528312009-02-05T12:31:00.000-08:002009-02-05T12:31:00.000-08:00Is this true?http://www.glennbeck.com/content/arti...Is this true?<BR/><BR/>http://www.glennbeck.com/content/articles/article/198/21091/Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-11719208.post-82501850486268325802009-02-05T11:37:00.000-08:002009-02-05T11:37:00.000-08:00I guess I'll have to go read The Roving Cavaliers ...I guess I'll have to go read <A HREF="http://www.debtdeflation.com/blogs/2009/01/31/therovingcavaliersofcredit/" REL="nofollow">The Roving Cavaliers of Credit</A>.Timhttps://www.blogger.com/profile/16530974968126497397noreply@blogger.comtag:blogger.com,1999:blog-11719208.post-69095264730792483812009-02-05T11:26:00.000-08:002009-02-05T11:26:00.000-08:00Tim - I will say it again. The Austrian focus on ...Tim - I will say it again. The Austrian focus on the FED is like Steve Keen said "Calling our current financial system a “fiat money” or “fractional reserve banking system” is akin to the blind man who classified an elephant as a snake, because he felt its trunk. We live in a credit money system with a fiat money subsystem that has some independence, but certainly doesn’t rule the monetary roost—far from it."<BR/><BR/>And we can see that now. Bernanke's infusion of fiat money into the system is doing nothing.<BR/><BR/>This situation sure is discrediting (no pun intended) Bernanke, Greenspan and Friedman, but by no means makes Austrian theory correct.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-11719208.post-52743461672080369562009-02-05T11:18:00.000-08:002009-02-05T11:18:00.000-08:00The reason I said that is because, if you have a f...The reason I said that is because, if you have a fractional reserve banking system (which is a whole different discussion), then you'll always have unnecessary runs on the bank driven by emotion and fear rather than underlying poor fundamentals of individual banks. By "lender of last resort" I meant lending to banks during such periods.Timhttps://www.blogger.com/profile/16530974968126497397noreply@blogger.comtag:blogger.com,1999:blog-11719208.post-44621915136836949912009-02-05T09:28:00.000-08:002009-02-05T09:28:00.000-08:00Yeah, I've not yet been convinced by the arguments...Yeah, I've not yet been convinced by the arguments for a lender of last resort either.Danhttps://www.blogger.com/profile/14611189349119964821noreply@blogger.comtag:blogger.com,1999:blog-11719208.post-88256684545697844142009-02-05T09:24:00.000-08:002009-02-05T09:24:00.000-08:00Why does lender of last resort make sense? They a...Why does lender of last resort make sense? They are not lending out their own property. In printing up more to lend as a last resort, they are taking from everyone else and handing it over (i.e. gifting not lending) to the screw ups. Without this backing, naughty banks would go belly up every time their reserve ratios dropped to low ... as it should be. Instead, our situation now is the whole economy goes bankrupt when everyone's collective reserves (real savings) drop too low.Anonymousnoreply@blogger.com