Jump to content


  • Content Count

  • Joined

  • Last visited


About Wandering_Dog

  • Rank

Recent Profile Visitors

The recent visitors block is disabled and is not being shown to other users.

  1. I took a quick read through what I could find on 'FXRP', and after a few misplaced links I think I read what you are talking about, but I didn't really get much useful info from it. If you have a link that might help.
  2. US municipalities are facing tax revenue shortfalls, as spending has fallen, incomes drop, forcing local gov to cut employment and services. The risk is micro deflationary spirals in small local economies that may increase political instability on the local level (violence). This effect is largely politically motivated at the Federal level, and may have lasting impact on US cities, which are often surplus generators for inter-state redistribution and largely represented by the democratic party. Ignoring the political dynamics and focusing purely on short term economic effects of unemploy
  3. Its a paraphrased quotation of Werner, which can be viewed on YouTube in several of his interviews. The legal operations of deposit creation have multiple sources that we can draw from, and endogenous money theory is hundreds of years old. However Werner is particularly quotable despite being a non-native English speaker.
  4. A ledger is not a legal instrument. It's just a method for tracking something. If someone writes into a ledger that they own or owe something, or have X of some currency, this is not a legal right or obligation, its just an arbitrary number in a ledger. Swap line contracts dictate how much a foreign CB can borrow and what the fx rate will be. The ledgers are just tracking how each entity has used the contract. Say the ECB and Fed enter a swap line contract for $10, and when the ECB requests $10 the Fed inadvertently types in $100, this entry has no impact on the contract. The contract prohibit
  5. It's fun to think about. The swaps have been unwound, you can check out the Fed's balance sheet here and the track swap line changes here. I was talking about on a CB's ledger. The CB USD swaps are settled on the Fed ledger with USD. If the US CB enters into a contract to borrow Baht from the Thai CB, the position is recorded on the Thai CB ledger. It is settled there when another account holder at the Thai CB transfers Baht to the Thai CB (which is recorded as deletion of that money). The US CB will record something on their own ledger accordingly, but that US ledger entr
  6. I'm not sure exactly what you are asking. Answering the question directly as you asked it, if CB's held less fx reserve deposits, then they would have less assets, the other CB would have less liabilities, and subsequently the BS's would be smaller. Is this relevant? Not in the context of your question, as far as I can tell. A CB balance sheet, denoted in its own currency, is just accounting entries. It's meaningless just like numbers are meaningless. They can mark up (down) accounts as they see fit, whatever numbers are on the ledger (and all the off balance sheet entries). It does
  7. Sounds like an angry neoclassical economics response. Monetary Post Keynesians predicted this crisis, the last crisis, QE's impact on prices, and much more. You can whine all you want about your models, you're wrong.
  8. That is what just happened. Without fed intervention, everything would have gone to zero. The Fed is really skewing your perception here. Just FYI, no one was buying, not even treasuries.
  9. The tax is a drain, its not spent back into the economy by the gov. You can see this for yourself by actually running the balance sheets.
  10. This is false. Gov doesn't tax to spend, your causality at the Federal level is reversed.
  11. More importantly however, is that inflation is not a function of the "money supply". The amount of money can impact prices, but its a small component for what is currently used to define inflation, which is consumption goods--these prices are sensitive to workers negotiation power, which is impacted by wage rates, household debt, and union representation. These prices are not particularly sensitive to increases in bank loans because the distribution of income and wealth is skewed away from workers.
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.