tag:blogger.com,1999:blog-6399730406480392183.post4170631766344950131..comments2024-03-27T11:18:34.222-03:00Comments on Viable Opposition: Exponential Growth in the Adjusted Monetary Base: What Is It Telling Us?A Political Junkiehttp://www.blogger.com/profile/03342345936277964422noreply@blogger.comBlogger17125tag:blogger.com,1999:blog-6399730406480392183.post-49719020257448684352013-08-16T11:12:13.354-03:002013-08-16T11:12:13.354-03:00I have used the original graph, and I have even go...I have used the original graph, and I have even got 109% if you do the calculations with respect to May 2009, and not January. <br /><br />Starting from your graph (not to mix the numbers), one can make a discounting curve. Say one has $203 in 2008. Their NPV, using this discounting curve, will be $100. <br /><br />Now, let's take the EUR as reference, in a cross currency swap in 2007: 70 EUR, against 100 USD. The historical exchange rate for 2007 was 0.7 and for 2008 was 0.65. This means that, if<br />1.the notional = 100 USD. I'll receive 100 USD in 2008, and their value would have been 100*0.65=65 EUR. I have lost 5 EUR<br />2.the notional = 70 EUR. Invested in 2008, they would have the present value of 100/203=49 USD. Since I have to give back 70 EUR, I transform my 49 USD*0.65 and get 32 EUR. I have lost 70-32=38EUR=\=5EUR<br /><br />If I am in 2007 and want to model 2008, how should I model the discounting interest rate and the EUR/USD FX: IR(2008)=130%/year and FX(2008)=0.65 for the 2008 cash flows in USD? Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-6399730406480392183.post-82341346318394843172013-07-19T09:00:12.495-03:002013-07-19T09:00:12.495-03:00Usually I am not regular to read article on blogs,...Usually I am not regular to read article on blogs, but I would like to say that this write-up very pressured me to check out and do it! Your writing taste has been surprised me. Thank you, quite nice article.<br /><br />jason<br /><a href="http://rmpproperty.com/investments/" rel="nofollow">rescue my pension</a>jason harishttps://www.blogger.com/profile/01018759510123080455noreply@blogger.comtag:blogger.com,1999:blog-6399730406480392183.post-46745470330570538202012-07-17T15:48:31.694-03:002012-07-17T15:48:31.694-03:00Interesting points regarding the importance of vel...Interesting points regarding the importance of velocity to inflation but it would seem to me that changes in velocity would recover much faster than the Fed's deflationary response(particularly in the United States with an aggressive consumer culture and easy electronic transfers). <br /> If the base really is as large as the author suggests an economic turnaround (with a corresponding increasin in V) could leave us flatfootedly chasing inflation at the moment when consumer confidence is finally daring to improve.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-6399730406480392183.post-45038704681418649392012-06-01T15:22:29.207-03:002012-06-01T15:22:29.207-03:00It's time to get rid of corporate and banking ...It's time to get rid of corporate and banking regulations. Countries are in the way.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-6399730406480392183.post-60206466054458137392012-05-25T01:02:03.916-03:002012-05-25T01:02:03.916-03:00Monetary base is merely half of the equation my fr...Monetary base is merely half of the equation my friend. Money multiplier - i.e. Velocity - is the other. Velocity has plummeted which is why core inflation is nowhere to be found.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-6399730406480392183.post-53298268440887223542012-04-06T12:19:33.321-03:002012-04-06T12:19:33.321-03:00The simple arguments don't always seem to appl...The simple arguments don't always seem to apply to what appears to be complex<br /><br />1) Gold and silver … NO ! … we can't limit the supply of money …<br /> ( assets MUST back currency … inevitably trust will devolve … and … )<br /><br />2) Monetary expansion is necessary in times of Recession.<br />( what this denies is the truth that inflation literally robs, steals from those who can least afford it … while … inflation enriches those in charge of the expansion )<br /><br />Take the medicine … Our "modern" … our "civilized" economy … is not truly either … nor is it truly "complex" … money is something valued (representative of value) that can be used in exchanged for something else, product or service, of value.<br /><br />Gold and Silver have value, so does oil, so does soil, crops, water …<br /><br />All the resources, including human, can … voluntarily … be used as assets … backing the creation of "currency".<br /><br />Loss of trust in those who "print the currency" … because they operate in secret … and what we do know … is that they steal … and cover their mistakes and lies … with taxes from those who are not responsible … save that they don't vote or rise up and Revolt …<br /><br />The trust is gone … or it should be … and we can have a transparent currency creation policy, monetary policy, fiscal policy.<br /><br />Let's agree and do it … otherwise … all these words … do not seem to have … over the nearing 250 years of our country unless you count to Jamestown … these words do not seem to have changed the fact that Power claimed the land and resources and indebted the rest to play / pay by their rules.<br /><br />That is how it is.<br /><br />The banks are run more and more without a check and balance.Pxhttps://www.blogger.com/profile/03813461150289266573noreply@blogger.comtag:blogger.com,1999:blog-6399730406480392183.post-82549704247614746322012-04-03T16:15:43.442-03:002012-04-03T16:15:43.442-03:00"In a time when we have so many sources of we..."In a time when we have so many sources of wealth, it's very arbitrary to pin the money supply and the defacto limit of wealth to two metals."<br /><br />You clearly dont understand deflationary pressures on prices and how they encourage efficiency and real growth. Do some research before spouting some limited money supply BS...Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-6399730406480392183.post-32165354901081369382012-04-03T16:12:11.974-03:002012-04-03T16:12:11.974-03:00"Bernanke did the only thing that he could wh..."Bernanke did the only thing that he could while Republicans stalemate fiscal stimulus."<br /><br />Typical lib/neocon blame game... talk real critical analysis with empirical facts and maybe someone educated will listen to you.<br /><br />Who in their right mind would want monetary expansion? Like a share of stock the more money that is printed the lower the purchasing power of your dollar. I dont want my purchasing power diminished!!<br /><br />Bankruptcy court exists for a reason, weed out mal-investment... just wait to see what is coming and you'll wish you lived through 2008 again.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-6399730406480392183.post-76552232941951510982012-03-28T23:18:16.984-03:002012-03-28T23:18:16.984-03:00Milton Friedman used to say that inflation would f...Milton Friedman used to say that inflation would follow expansion of money after 6 months. Maybe monetary base has increased as much as money circulation has decreased?Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-6399730406480392183.post-78424250291044846372012-03-24T21:55:15.230-03:002012-03-24T21:55:15.230-03:00I've written an analysis of the advantages and...I've written an analysis of the advantages and disadvantages of the gold standard <a href="http://moderatepoli.blogspot.com/2011/08/cross-of-gold.html" rel="nofollow">here</a>. But the pithiest argument came from a commenter on another blog. Let me paraphrase:<br /><br />"So if I want to buy a house, I have to wait for someone to dig up some metal before I can have a mortgage."<br /><br />In a time when we have so many sources of wealth, it's very arbitrary to pin the money supply and the defacto limit of wealth to two metals.ModeratePolihttps://www.blogger.com/profile/01721945380057992971noreply@blogger.comtag:blogger.com,1999:blog-6399730406480392183.post-5629638266659043962012-03-23T16:26:26.997-03:002012-03-23T16:26:26.997-03:00Bernanke recognizes that he is the only actor in t...Bernanke recognizes that he is the only actor in the economy that doesn't have his hands tied. He did what he could to rescue the economy but there is only so much that monetary policy can do. Fiscal policy stimulus - real stimulus not neutralized by the contraction of local and state spending - is what was needed. Bernanke did the only thing that he could while Republicans stalemate fiscal stimulus.Mikenoreply@blogger.comtag:blogger.com,1999:blog-6399730406480392183.post-70522576992770292392012-03-23T14:59:14.555-03:002012-03-23T14:59:14.555-03:00This silly argument again?
A rebuttle from someon...This silly argument again?<br /><br />A rebuttle from someone with actual qualifications:<br />"The Monetary Base is exploding. So what?"<br />http://gregmankiw.blogspot.ca/2009/12/monetary-base-is-exploding-so-what.htmlAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-6399730406480392183.post-71773637476837819312012-03-23T05:08:26.106-03:002012-03-23T05:08:26.106-03:00If Congress enacted a bi-metallic standard using g...If Congress enacted a bi-metallic standard using gold&silver...the Feds would not have the ability to steal from people who save!SinCityLifehttps://www.blogger.com/profile/15988564126398345353noreply@blogger.comtag:blogger.com,1999:blog-6399730406480392183.post-87826084924570466212012-03-23T05:06:46.008-03:002012-03-23T05:06:46.008-03:00This comment has been removed by the author.SinCityLifehttps://www.blogger.com/profile/15988564126398345353noreply@blogger.comtag:blogger.com,1999:blog-6399730406480392183.post-53911406988262214622012-03-21T00:32:34.081-03:002012-03-21T00:32:34.081-03:00Although I'm concerned about pumping up the mo...Although I'm concerned about pumping up the money supply, I wonder whether this is just partial replacement of the wealth that was destroyed in the recession. I wonder what the capital positions of the banks are, and whether QE1 and QE2 were largely to help them get on a firmer footing so they could lend again, but with better judgment this time.<br /><br />The most important issue is stopping the inflationary behavior before a bubble occurs, while avoiding sending the economy into recession again. (My layman's guess.)ModeratePolihttps://www.blogger.com/profile/01721945380057992971noreply@blogger.comtag:blogger.com,1999:blog-6399730406480392183.post-40945895231878300612012-03-19T16:41:12.600-03:002012-03-19T16:41:12.600-03:00Money velocity - coming right up.Money velocity - coming right up.A Political Junkiehttps://www.blogger.com/profile/03342345936277964422noreply@blogger.comtag:blogger.com,1999:blog-6399730406480392183.post-29476279648392994302012-03-19T15:41:46.933-03:002012-03-19T15:41:46.933-03:00An uneducated view.
I read that Fed reserves, I t...An uneducated view.<br /><br />I read that Fed reserves, I think, were a key number also as against money supply.<br /><br />Whatever the name of the indicators what is key is money making out into the economy. <br /><br />Hence M0 may not in itself be the big cahuna, especially if bank reserves have been heavily boosted to stop the interbank market freezing up.<br /><br />Perhaps money velocity?jonnysingaporenoreply@blogger.com