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Post by mistergrafik »

Butcher Bob wrote: But that money is still due...the burden has just been delayed, not removed.
As with many things it seems.

Maybe they offer them a ~ down the road ~ forgiveness plan... And by plan I mean loan.
Butcher Bob wrote: Side note: The Fed has been purchasing $40 billion in mortgage backed securities, with QE money, every month, during the entire moratorium. They are way ahead of China in soaking up real estate. :winky:
For people like me who may not know QE Monies... Quantitative easing (QE) is a monetary policy whereby a central bank purchases at scale government bonds or other financial assets in order to inject money into the economy to expand economic activity.

... I need bigger trees :toker1:

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Post by rSin »

Butcher Bob wrote:
rSin wrote:less than 8percent of dollars is cash, about
you could DOUBLE the bills and it wouldnt make a dent
You do realize "cash" is not just physical currency, right?

hmm...
i was refering to physically printed bill and coins, so that economic
not bookkeeping or finance, but please

enlighten me
the intolerance of the old order is emerging from the rosy mist in which it has hitherto been obscured.

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Post by Butcher Bob »

rSin wrote:
Butcher Bob wrote:
rSin wrote:less than 8percent of dollars is cash, about
you could DOUBLE the bills and it wouldnt make a dent
You do realize "cash" is not just physical currency, right?

hmm...
i was refering to physically printed bill and coins, so that economic
not bookkeeping or finance, but please

enlighten me
Well, "economically" speaking, "cash" (M1) is more than just physical currency. It includes: cash, checking accounts, traveler's checks, demand deposits, and other checkable deposits. When the government creates money, it does not necessarily mean bills are printed or coins are minted. When Treasury does QE they simply inform the Fed, and the Fed credits their accounts with 1s and 0s on the computer. There is now more "cash", without an actual increase in physical currency. Please, look at this graph...
https://fred.stlouisfed.org/series/M1" onclick="window.open(this.href);return false;
Do you think that isn't leaving a dent?

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Post by rSin »

i still do,
it increases the range downward that bills and coins amount to in total

right?
the intolerance of the old order is emerging from the rosy mist in which it has hitherto been obscured.

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Post by Butcher Bob »

rSin wrote:i still do,
it increases the range downward that bills and coins amount to in total

right?
True...but the percentage of "cash" that is physical currency, is irrelevant. "Cash" is a measure of means to conduct transactions. When you purchase something you could use physical currency, or you could write a check, or you could swipe your debit card. "Economically" it is all the same, even though only one of those methods involves physical currency, because "cash" moves from one entity to another.

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Post by Jesús Malverde »

It's gonna blow your mind when you finally put it all together BB :emp:
One for the rook

One for the crow

One to rot

and one to grow

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Post by ben ttech »

Butcher Bob wrote: When Treasury does QE they simply inform the Fed, and the Fed credits their accounts with 1s and 0s on the computer.

is there a graph to chart this aspect of monitary inflation against what total ALL others banks fractional extension creation amounted to?
"disaster is the mother of necessity" rSin

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Post by Butcher Bob »

Jesús Malverde wrote:It's gonna blow your mind when you finally put it all together BB :emp:
Put what together?


ben ttech wrote:
Butcher Bob wrote: When Treasury does QE they simply inform the Fed, and the Fed credits their accounts with 1s and 0s on the computer.
is there a graph to chart this aspect of monitary inflation against what total ALL others banks fractional extension creation amounted to?
Theoretically 10x turns to 100x when you run it through to the end. But the Fed has the ability to alter that by changing the reserve requirements. On top of which I see some institutions cheating the system...having no more reserves to base loans off of, they simply make the loan and hold 10% of it to create the reserves to cover it.

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