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Old 01-31-2016, 03:41 PM
 
Location: San Diego California
6,797 posts, read 6,122,639 times
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Quote:
Originally Posted by MTAtech View Post
Deflation isn't directly associated with the money supply, just like inflation isn't associated with the money supply.

During the economic downturn, economists that didn't believe in Keynes predicted that the Fed increasing the money supply was going to result in hyper-inflation. They couldn't have been more wrong.



Let us remember that deflation is a decrease in the general price level of goods and services.
I am not sure where you are getting your information but it is wrong.
Both inflation and deflation are a direct consequence to varying levels in money supply.
The Feds increase in the money supply did result in inflation in the areas which it was applied.
Hyper inflation is different in that it is not a function of money supply, it is a function of the loss of productivity in which goods are no longer available. Germanys hyperinflation was a factor of striping Germany of its goods by members of the Versailles Accord.

Deflation in a debt based monetary system is a function of the default of debt which translates to the destruction of the money supply.
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Old 01-31-2016, 04:51 PM
 
8,297 posts, read 3,461,858 times
Reputation: 1588
Quote:
Originally Posted by jimhcom View Post
I am not sure where you are getting your information but it is wrong.
Both inflation and deflation are a direct consequence to varying levels in money supply.
The Feds increase in the money supply did result in inflation in the areas which it was applied.
Hyper inflation is different in that it is not a function of money supply, it is a function of the loss of productivity in which goods are no longer available. Germanys hyperinflation was a factor of striping Germany of its goods by members of the Versailles Accord.

Deflation in a debt based monetary system is a function of the default of debt which translates to the destruction of the money supply.
If one includes the Fed's QE money in the money supply, then one should understand why $3+T was not particularly inflationary.
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Old 01-31-2016, 05:12 PM
 
Location: San Diego California
6,797 posts, read 6,122,639 times
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Quote:
Originally Posted by Hoonose View Post
If one includes the Fed's QE money in the money supply, then one should understand why $3+T was not particularly inflationary.
That money never really made it into the economy at large. A lot went overseas in the carry trade causing problems there, some went into the oil industry financing the fracking operations, and will never be repaid, and a lot went into equities driving the markets back above pre 2008 levels. The average Joe never put his hand on a dollar of that money.
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Old 01-31-2016, 05:24 PM
 
8,297 posts, read 3,461,858 times
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Quote:
Originally Posted by jimhcom View Post
That money never really made it into the economy at large. A lot went overseas in the carry trade causing problems there, some went into the oil industry financing the fracking operations, and will never be repaid, and a lot went into equities driving the markets back above pre 2008 levels. The average Joe never put his hand on a dollar of that money.
Relatively little QE money went anywhere and remain as excess reserves at banks.

https://research.stlouisfed.org/fred2/series/TREAST

Thus the lack of both substantial stimulus and inflation.
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Old 01-31-2016, 05:59 PM
 
Location: San Diego California
6,797 posts, read 6,122,639 times
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Quote:
Originally Posted by Hoonose View Post
Relatively little QE money went anywhere and remain as excess reserves at banks.

https://research.stlouisfed.org/fred2/series/TREAST

Thus the lack of both substantial stimulus and inflation.
I don't think you understand what the link you provided shows. It does not support your statement, it shows Federal Reserve holdings. It does not show what banks did with all the money the Fed provided to the banks to buy them out of their toxic assets.
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Old 02-02-2018, 02:04 PM
 
Location: Los Angeles
14,382 posts, read 7,486,973 times
Reputation: 6624
Quote:
Originally Posted by jimhcom View Post
I don't think you understand what the link you provided shows. It does not support your statement, it shows Federal Reserve holdings. It does not show what banks did with all the money the Fed provided to the banks to buy them out of their toxic assets.
I can't get over how you manage to be above everyone else (in your own mind) yet so wrong so often. It's rather amusing really.

The one thing you are is consistent. I'll give you that.
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Old 02-02-2018, 02:51 PM
 
8,297 posts, read 3,461,858 times
Reputation: 1588
Quote:
Originally Posted by jimhcom View Post
I don't think you understand what the link you provided shows. It does not support your statement, it shows Federal Reserve holdings. It does not show what banks did with all the money the Fed provided to the banks to buy them out of their toxic assets.
OK. Sorry it took 2 years to respond!

https://fred.stlouisfed.org/series/EXCSRESNS

There has been a bit of leakage.
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Old 02-02-2018, 05:00 PM
 
4,750 posts, read 2,268,925 times
Reputation: 8819
Quote:
Originally Posted by steven_h View Post
I can't get over how you manage to be above everyone else (in your own mind) yet so wrong so often. It's rather amusing really.

The one thing you are is consistent. I'll give you that.
Speaking of consistency, if we get a true stock market correction jimhcom might be back. He's got a long history of appearing when things are dropping spouting I-told-you-sos, and he'll hang around telling everyone how terrible everything is until things inevitably go back up.
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