Posted on 07/27/2009 6:32:08 PM PDT by expat_panama
So you are serious? This is not a word play like the meaning of "is?"
Yes, I'm serious.
Please explain ole wise one.
Have you ever had a mortgage or car loan?
Years and years ago. I'll try to guess where you are going.
A percentage became an assest for the bank. A percentage went into the banks reserve. With that assest the bank could use it to produce another loan and so on. Though not actually, but somewhat similar to a ponzi scheme.
But now, what we see today are banks sitting on bad loans. Their assests diminished losing their borrowing power. So now comes the fed and the treasury to the rescue. The fed convinces the govt something must be done to thwart a disaster. The govt agrees. So the fed and the treasury scheme to create money to pimp into the system.
How am I doing so far?
Your guesses aren't very good.
A percentage became an assest for the bank. A percentage went into the banks reserve.
No. The entire mortgage loan is an asset. The bank's deposits are liabilities, but that's not where I'm going.
How am I doing so far?
Not so good.
Say your bank has $1,000,000 in deposits. You come looking for a $200,000 mortgage loan. They loan you $200,000 and the home seller takes his $200,000 and deposits it in the bank. Now the money supply is $1,200,000.
Same thing if you took out a car loan. You increase the money supply and Greenspan and Bernanke didn't have to co-sign or even know about your loan for the money supply to increase.
The Fed can influence but not control the money supply. Questions?
You are mistaken.
In the second part you commit a false dilemma by insisting there is no other possible cause except for the sinister.
Sinister reason, not cause.
Somehow you are still arguing that the reader should know which meaning you are using for "sinister". Why?
Because words mean things. Just because some of you don't know what words mean doesn't mean the rest of us are no longer allowed to use those words.
Do you really believe that the only "logical" reason to cease publishing M3 is "sinister"? That there is absolutely no other logical choice?
Yes. All the logical reasons are sinister.
If the only logical option is evil, why would this preclude a satanic quality? After all, Satan would have us choose evil over good 10 out of 10 times.
Once again, I can't be held responsible for other people not knowing what words mean, especially when the definition has been provided. Some of you seem to be confusing the word sinister with diabolical. If I had meant diabolical, I would have used that word instead.
“The Fed can influence but not control the money supply. Questions? “
No. I’m satisfied. Since you admitted the fed influences the money supply. Typically, anyone or any entity that is adept at influence, will in effect, have control.
Really? Why not demonstrate how I'm mistaken. Source?
Sinister reason, not cause.
Same false dilemma.
Because words mean things. Just because some of you don't know what words mean doesn't mean the rest of us are no longer allowed to use those words.
Yes, and the current meaning of sinister is "evil", regardless of what the latin root is. Sure, maybe YOU use the archaic definition all the time in general conversation, but the rest of the world doesn't.
Yes. All the logical reasons are sinister.
All the logical reasons are "unlucky"? That's what you meant to say in your post. Pssst...I don't think Bernanke is reading tea leaves.
Some of you seem to be confusing the word sinister with diabolical.
Now who's putting words in someone's mouth. I meant sinister -- i.e. singularly evil. Not in your dictionary?
Yes, they influence the money supply but couldn't force you to get a mortgage or prevent you from getting one.
Typically, anyone or any entity that is adept at influence, will in effect, have control.
Really? What control did they have over your mortgage or car loan?
This is a subject that gets somewhat complex;
It's complicated and I'm in over my head.
I apologize for assuming a certain level of audience knowledge about how the Fed and the Treasury works, and how dollars are (supposed to be) created.
I thought I could BS my way through the topic.
I could attempt to explain, but in all honesty any short description would leave out important (relevant) details.
I just realized that you caught my BS, so I'm going to run away, before I say any more stupid things on this thread.
I would suggest searching the web to find appropriate books and videos that describe the Fed's role in creating money in collaboration with the Treasury Department (or at least, how the process is supposed to work), which can no doubt do a better job at describing the process than any short post here could.
Maybe if you look for your own info, I'll be able to pretend I knew what I was talking about.
You are wrong; you should try to educate yourself about how the Fed works.
OMG! Hilarious!
For example, they bought ~$122 billion in the late March auction alone.
Maybe you need to look up the word auction?
Yes, the Fed buys Treasury securities. No, they do not buy them at Treasury auctions.
Glad I could help. Let me know if I can answer any questions for you, before you make any more stupid claims.
You are wrong, and you missed the whole point of the original post and the reason for why it is important for the Fed to publish M3.
No, I simply gave you the benefit of the doubt that your questions were genuine rather than an attempt at trolling. You asked some very ignorant questions, and any valid answers to those questions are more than can be covered in a short post.
The sad thing is that you still don't grasp the connection between M3 and the Fed buying treasuries. Or perhaps that is just an attempt to continue your trolling.
You are wrong, and you missed the whole point of the original post and the reason for why it is important for the Fed to publish M3.
The Fed does not buy at Treasury auctions and publishing M3 would not give any secret insight into those auctions or into the Fed's balance sheet.
Why don't you just link to the website that shows the results of Treasury auctions along with the amount that the Fed bought at each auction. It should be easy for a Fed expert like you.
Or you could run away......
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