Pksimon2007
Member
- May 2, 2015
- 427
- 30
- 16
- Confute?
Is that like "refudiate"?
dear, instead of being a perfect dummy look it up!!! Dah!!!
- I think you meant "conflate"
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- Confute?
Is that like "refudiate"?
dear, instead of being a perfect dummy look it up!!! Dah!!!
dear, instead of being a perfect dummy look it up!!! Dah!- I think you meant "conflate"
I can help you understand reserves, Edward. A friend of mine wrote a little description that I think lays it out well.
too stupid!! I laid it out perfectly in 20 words or so above. If you think its inaccurate please say exactly why or just admit to being a typical liberal.
That is a myth believed by many economists, but it's completely false.
That is a myth believed by many economists, but it's completely false.
dear, well then its a myth believed by the economists at the Fed too! Here's how they have been doing their jobs for 100 years in their own language: Reserve requirements are the portions of deposits that banks must hold in cash, either in their vaults or on deposit at a Reserve Bank. A decrease in reserve requirements is expansionary because it increases the funds available in the banking system to lend to consumers and businesses.
That is a myth believed by many economists, but it's completely false.
dear, well then its a myth believed by the economists at the Fed too! Here's how they have been doing their jobs for 100 years in their own language: Reserve requirements are the portions of deposits that banks must hold in cash, either in their vaults or on deposit at a Reserve Bank. A decrease in reserve requirements is expansionary because it increases the funds available in the banking system to lend to consumers and businesses.
That is a myth believed by many economists, but it's completely false.
dear, well then its a myth believed by the economists at the Fed too! Here's how they have been doing their jobs for 100 years in their own language: Reserve requirements are the portions of deposits that banks must hold in cash, either in their vaults or on deposit at a Reserve Bank. A decrease in reserve requirements is expansionary because it increases the funds available in the banking system to lend to consumers and businesses.
That is a myth believed by many economists, but it's completely false.
dear, well then its a myth believed by the economists at the Fed too! Here's how they have been doing their jobs for 100 years in their own language: Reserve requirements are the portions of deposits that banks must hold in cash, either in their vaults or on deposit at a Reserve Bank. A decrease in reserve requirements is expansionary because it increases the funds available in the banking system to lend to consumers and businesses.
, It induces your bank to create a new bank deposit, and the Fed to create new reserves.
That is a myth believed by many economists, but it's completely false.
dear, well then its a myth believed by the economists at the Fed too! Here's how they have been doing their jobs for 100 years in their own language: Reserve requirements are the portions of deposits that banks must hold in cash, either in their vaults or on deposit at a Reserve Bank. A decrease in reserve requirements is expansionary because it increases the funds available in the banking system to lend to consumers and businesses.
- Banks cannot and do not lend reserves. Reserves can only be used for interbank payments. Period.
They cannot withdraw them or lend them to customers, nor can they leverage them into loans.
And no, don't bother telling me the Fed believes this. I'm sure you can find some archaic verbiage somewhere on the Fed's website, written fifty years ago by an unpaid college intern, which says so.
It is not so.
That is a myth believed by many economists, but it's completely false.
dear, well then its a myth believed by the economists at the Fed too! Here's how they have been doing their jobs for 100 years in their own language: Reserve requirements are the portions of deposits that banks must hold in cash, either in their vaults or on deposit at a Reserve Bank. A decrease in reserve requirements is expansionary because it increases the funds available in the banking system to lend to consumers and businesses.
- Banks cannot and do not lend reserves. Reserves can only be used for interbank payments. Period.
They cannot withdraw them or lend them to customers, nor can they leverage them into loans.
And no, don't bother telling me the Fed believes this. I'm sure you can find some archaic verbiage somewhere on the Fed's website, written fifty years ago by an unpaid college intern, which says so.
It is not so.
- That's another topic. Does that mean that you are now willing to accept what reserves are and how the system works, and that your argument is "okay, PK, you're right, but I think it's inflationary".
Is that your current position?
That is a myth believed by many economists, but it's completely false.
dear, well then its a myth believed by the economists at the Fed too! Here's how they have been doing their jobs for 100 years in their own language: Reserve requirements are the portions of deposits that banks must hold in cash, either in their vaults or on deposit at a Reserve Bank. A decrease in reserve requirements is expansionary because it increases the funds available in the banking system to lend to consumers and businesses.
- Banks cannot and do not lend reserves. Reserves can only be used for interbank payments. Period.
They cannot withdraw them or lend them to customers, nor can they leverage them into loans.
And no, don't bother telling me the Fed believes this. I'm sure you can find some archaic verbiage somewhere on the Fed's website, written fifty years ago by an unpaid college intern, which says so.
It is not so.
- That's another topic. Does that mean that you are now willing to accept what reserves are and how the system works, and that your argument is "okay, PK, you're right, but I think it's inflationary".
Is that your current position?
i will agree that historically money has expanded slightly with deficits as the Fed has yielded to political presssure. For example, Chuck Schummer recently warned Bernanke "you're the only game in town" since Congress was gridlocked. But, lately the Fed has not yielded and inflation is not a problem. This is because deficits are financed by taking money out of the economy, not by adding money to the economy to cover the deficits.
Do you understand now??