Look, here’s the thing about money: it isn’t real. It’s all about belief and trust. I’ve been invested in equities and money markets for over 40 years. I’ve ridden the ups and downs. Money only means what people say it means, neither more nor less. Alfred North Whitehead coined the “fallacy of misplaced concreteness.” He […]
The Fed has two jobs: (1) control inflation and (2) maximize employment. So how’s that going? “That’s a change in tone from last week, when most Fed policymakers voted to leave their influential interest rate unchanged for the fifth time this year. Fed officials had been content to wait and see how tariffs were moving […]
“The Fed Makes a Large Rate Cut and Forecasts More to Come” Jeanna Smialak Writes “The Federal Reserve cut interest rates on Wednesday by half a percentage point, an unusually large move and a clear signal that central bankers think they are winning their war against inflation and are turning their attention to protecting the […]
We have been playing brinksmanship the last 30 days as to when it is a good time to reduce the Fed Rate taking your foot off the bake so to speak. If you read New Deal democrat’s latest report . . . “The monthly personal income and spending report is now the most important report […]
Interest Rate increases to fight perceived inflation or not fight perceived inflation? Big believer in the cause of much of the inflation being deliberate supply chain planning to increase prices. Have not seen a deliberate price increase yet which will fix a supply chain. Poor or deliberate planning creating issues, a lack of knowledge on […]
Fed’s interest earnings approach $100b WASHINGTON — The Federal Reserve said Friday it transferred a record $96.9 billion to the U.S. treasury in 2014, profits on its unprecedented $4.4 trillion in holdings designed to support the U.S. economy in the aftermath of the Great Recession. Returning to a topic I have raised a few times […]
Via Digby comes a couple short films talking about what is money. They are part of an effort by a group/site called We The Economy that has 20 short films aimed: to drive awareness and establish a better understanding of the U.S. economy. Told through animation, comedy, musical, non-fiction, and scripted films, WE THE ECONOMY […]
And this is an honest question, one that I have been poking around in but maybe don’t have the chops to answer. Lets take three measures of Public Debt: One nominal. Public Debt as of the 16th was $17.899 trillion. And rising. Two as percentage of GDP. And BTW the preferred measure of deficit fetishists […]
Fed Treasury Holdings 5-7-2014 The above link should take you to a PDF showing the Fed’s System Open Market Accounts holdings of Treasury Bonds and Notes which the second link will tell you comprise $2.224 trillion of the total $4.017 trillion of SOMA Holdings, with that total including $1.631 trillion of Fannie and Freddie Mac […]
It is a common trope among Austerians that the U.S. is passing on unsustainable debt to our children and grandchildren. And certainly there are some scary numbers out there, for example “$17.4 trillion!!” A very real number. But maybe it would be useful to render that number down so as to calculate real incidence of […]