Posted on 08/20/2009 10:08:46 AM PDT by sdw2009
Readers of my newsletter, Porter Stansberry's Investment Advisory, must have been a little surprised by the dire warning I gave about the coming inflation in my last issue...
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Are you Porter Stansbury?
Porter Stansberry, that be ;-)
Well I have asked this before in another post, but I am wondering what Obamanaughts could really do in the best case scenario with reducing the money supply. Can you answer this or comment on the following: For my family’s sake I am wondering what is likely to happen. Can the fed do much to reduce M1 and won’t selling bond IOU’s just increase US Debt. Others have said: 1) The most common: sell or buy treasury securities—this is called open market operations 2) Change the discount rate at which banks borrow from the Fed—which lowers the federal funds rate (the fed funds rate is usually about 1% below the discount rate) 3) The most drastic and very rarely used—changing the reserve ratio—that is—changing the pct. of deposits that banks must keep on hand. See, banks only keep a fraction of deposits on hand (currently set at 10%). Changing this ratio greatly alters the amount that banks can lend out, thus lowering or increasing the interest rate. I guess increased debt doesn’t matter so much if the US GDP keeps growing but if not or if population trends flat or decrease aren’t we “in heep big trouble?”
Given what happened in Japan and now lately in Great Britain, it seems like these policies will lead to a long period of deflation, not inflation.
Apparently sdw2009 must have been a little surprised by the dire warning the mods gave about the coming zotting in the site rules against spamming....
Don’t think too much about it.. this guy is just a spammer, the link just tries to get you to subscribe to his investment newsletters..
Gotta love the mods sense of humor.
Gibbs turned a nickel into 15 cents.
We should all launch our own newsletters for financial advice. I have decided my quarterly 4-page newsletter with Sure fire, never miss financial advice will cost $1,500 per yeasr.
I'm gonna charge $750. I can give advice just as bad as yours for half the price.
Or zotted.
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