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WHAT'S THE FED UP TO WITH THE MONEY SUPPLY?(Chart didn't copy over)
Financial Sense Online ^ | 26 December 2005 | Robert McHugh

Posted on 12/27/2005 6:20:46 AM PST by hubbubhubbub

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To: coloradan

Bingo on that. Much of the taxes we currently pay are for an army of bureaucrats to tell everyone else "NO" when they want to do something.


21 posted on 12/27/2005 7:00:43 AM PST by 308MBR (Not only older, but bolder. Merry Christmas and a Happy New Year.)
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To: coloradan
And why is that? Because regulations are so stifling here that the cost to do business is much less elsewhere.

Nope. Nothing to do with it. Regulations or not, China would still have .37 an hour average wages while we have a much higher standard of living. Not because of regulation.. but because of supply and demand working within the market. Negotiations and competition drove wages and benefits until guys like you decided to find someway to point blame at anything possible for selling out America for profit. At least the Rosenbergs were executed honestly for their version of it.

22 posted on 12/27/2005 7:03:05 AM PST by Havoc (President George and King George.. coincidence?)
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To: Havoc

So, you think I should be executed. Thanks for the sentiment.

But I ask again, if you do not support free trade, what do you support? Central planning? Are you a commie?


23 posted on 12/27/2005 7:07:14 AM PST by coloradan (Failing to protect the liberties of your enemies establishes precedents that will reach to yourself.)
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To: hubbubhubbub
If a substantial amount of oil transactions will suddenly be conducted in Euros instead of Dollars, this should put pressure on the Dollar as folks exchange Dollars for Euros, jeopardizing the Dollar’s status as the world's reserve currency, making it more difficult to print all the dollars the Fed wants to without driving the Dollar into the ground.

Hogwash. Transacting oil in Euro instead of dollars may mean that the buyers need Euro's to buy the oil. Fine. But what about the sellers? they now have euro's that they need to convert (sell) into whatever currency they need to use for other transactions. So the buying pressure on the dollar that goes away is exactly offset by the decline in selling pressure that the crude sellers exert.

the author's analysis is either half-baked or deliberately misleading. Either way it is hogwash.

24 posted on 12/27/2005 7:11:00 AM PST by nj_pilot
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To: Havoc
Not because of regulation.. but because of supply and demand working within the market.

Incidentally, we would pay some jobs a lot less, except that there's this minimum wage thing. That's not supply and demand, and it's not free market. Instead, it's a legislated cost of labor - that you deny. And it's just the tip of the iceberg. What we have here is far, far from a free market.

25 posted on 12/27/2005 7:12:33 AM PST by coloradan (Failing to protect the liberties of your enemies establishes precedents that will reach to yourself.)
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To: nj_pilot

If the world's currency of reserve is the euro rather than the dollar, that makes a big difference to the originators of the dollar.


26 posted on 12/27/2005 7:14:40 AM PST by coloradan (Failing to protect the liberties of your enemies establishes precedents that will reach to yourself.)
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To: Ninian Dryhope

What happens to the dollar when the oil providers will no longer accept it for oil?


27 posted on 12/27/2005 7:15:21 AM PST by Pylot
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To: hubbubhubbub
Regardless of issues of 'moonbatism', or 'goldbugism', IMO, we need more transparency from the Fed, not less.
28 posted on 12/27/2005 7:16:01 AM PST by zeugma (Warning: Self-referential object does not reference itself.)
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To: coloradan; nj_pilot
If the world's currency of reserve is the euro rather than the dollar, that makes a big difference to the originators of the dollar.

You really think the world is going to depend on a currency that's controlled by the Germans and the French? Good luck with that. LOL!

29 posted on 12/27/2005 7:17:17 AM PST by Toddsterpatriot (The Federal Reserve did not kill JFK. Greenspan was not on the grassy knoll.)
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To: tomahawk
Other than the value that the market places on it what value do either of them have?

You can't eat dollars. They have no industrial use.

You can't eat gold. It has very little industrial use (unless, of course, when there's blood in the street, those with product to sell will want gold so they can give their sweetie a nice birthday present).

Gold and, for that matter money, might as well be tulip bulbs.

Just because some in the past put some mystical value in gold doesn't mean it's true today. In fact I think that salt was a far better form of specie.

30 posted on 12/27/2005 7:18:38 AM PST by Proud_texan ("Moderation in the pursuit of justice is no virtue." - Barry Goldwater)
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To: Toddsterpatriot

It isn't up to me. Perhaps you'd like to enlighten us why some countries have indeed done exactly this. (Although it could be that the French and German printing presses aren't in quite as high a gear as the American ones are.)


31 posted on 12/27/2005 7:20:15 AM PST by coloradan (Failing to protect the liberties of your enemies establishes precedents that will reach to yourself.)
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To: coloradan
Perhaps you'd like to enlighten us why some countries have indeed done exactly this.

There are a lot of stupid people out there.

(Although it could be that the French and German printing presses aren't in quite as high a gear as the American ones are.)

Their economy, their military, their printing presses.....there are many things that the Germans and French don't do as well as the US.

32 posted on 12/27/2005 7:22:34 AM PST by Toddsterpatriot (The Federal Reserve did not kill JFK. Greenspan was not on the grassy knoll.)
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To: Havoc
Not because of regulation..

That's the biggest load of BS I've ever read on this site. Bring the corporate tax rate to 15% or less and kill the regulation and you'll see this country's GDP skyrocket.

Our labor comes from automation now. Get some new skills - protectionism is for looters.

33 posted on 12/27/2005 7:30:42 AM PST by jsmith48 (www.isupatriot.com)
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To: hubbubhubbub
On November 10th, 2005, shortly after appointing Bernanke to replace Greenbackspan, the Fed mysteriously announced with little comment and no palatable justification that they will hide M-3 effective March 2006. M-3 has been the main staple of money supply measurement and transparent disclosure since the Fed was founded back in 1913. It is the key monetary aggregate that includes Fed Repo transactions, that mechanism whereby the Fed increases reserves.

Maybe a goldbug on this thread can explain why M3 is so important? This clown says hiding M3 will allow the Fed to increase the money supply and no one will notice. Maybe he doesn't know the definition of a Repo?

Repurchase agreements(when transacted by The Federal Open Market Committee of the Federal Reserve) initially add reserves to the banking system and then withdraw them; reverse repos initially drain reserves and later add them back.

Or maybe he doesn't understand the difference between temporarily adding reserves and permanently adding reserves? Goldbug clarification of his fear would be greatly appreciated. Quickly, before the Hindenburg Omen becomes a reality. LOL!!

34 posted on 12/27/2005 7:31:28 AM PST by Toddsterpatriot (The Federal Reserve did not kill JFK. Greenspan was not on the grassy knoll.)
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To: coloradan
If the world's currency of reserve is the euro rather than the dollar, that makes a big difference to the originators of the dollar.

You are correct, but don't confuse "reserve currency" with what a commodity is denominated in. A reserve currency is the currency in which central banks settle transactions with other central banks and in which they hold their excess reserves. That is a wholly different concept from private transactions between buyers and sellers of oil.

Now, should the central banks decide that they no longer wish to hold excess reserves in dollars (Treasury bonds and notes), then there is a demand shift for dollars. You have unleashed a large stock of dollars onto the market. For a lot of reasons, that is unlikely to happen; the foreign central banks would be cutting their noses off to spite their faces if they were to dump dollars. At the most basic level, a dollar collapse kills the US economy (can't afford those cheap chinese things anymore), so then where are they?

But that's got nothing to do with how a commodity is priced. As I said in my earlier post, the decreased buying pressure on the dollar is offset by the decreased selling pressure on the dollar. it's a wash.

This misleading article was authored by someone who either doesn't understand capital flows or intends to mislead.

35 posted on 12/27/2005 7:37:38 AM PST by nj_pilot
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To: montag813
Unbelievable! I always wondered how the clintonistas peddled their BS to so many seemingly intelligent people, when it was so obvious that it was crap. But, it is the same story all over again with the money creators. Somehow, they are peddling an endless amount of fiat and convincing folks that the gold is a claptrap scheme.
36 posted on 12/27/2005 7:39:58 AM PST by ghostrider
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To: ghostrider
Somehow, they are peddling an endless amount of fiat and convincing folks that the gold is a claptrap scheme.

So the money supply is growing too fast? How fast should it grow? Gold is great.....what is its dividend yield? Or does it pay interest?

37 posted on 12/27/2005 7:41:58 AM PST by Toddsterpatriot (The Federal Reserve did not kill JFK. Greenspan was not on the grassy knoll.)
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To: LS
LS, you said ... "Seems to me common sense you would inject some money into the system before Christmas. Duh."

$196 Billion in six weeks!

Ignorance runs rampant in this world!

Bernanke is the guy who said, ... "that we can fight deflation with the printing press. We can drop $100.00 bills out of helicopters."

38 posted on 12/27/2005 7:48:28 AM PST by Thomas Jefferson II (If we could harness the energy from our fore-fathers spinning in their graves)
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To: coloradan

Funny, what we had before free trade seemed to work wonders for building our economy for years. Guess that must have been communistic.


39 posted on 12/27/2005 7:54:20 AM PST by Havoc (President George and King George.. coincidence?)
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To: coloradan

I know you would pay some jobs a lot less, those you aren't offshoring. Those you are trying to use illegals to fill because you don't want to pay a market rate where someone can live off their earnings. That's what got government involved in the first place - for right or wrong. Ethical shortcomings of business are usually the cause of government intervention.


40 posted on 12/27/2005 7:57:40 AM PST by Havoc (President George and King George.. coincidence?)
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