User Tag List

First 123 Last

Results 11 to 20 of 27

  1. #11
    Senior Member Lateralus's Avatar
    Join Date
    May 2007
    MBTI
    ENTJ
    Enneagram
    3w4
    Posts
    6,276

    Default

    We're not seeing the effects of this increase in the money supply because banks are contracting the money supply through a lack of lending (fractional reserve banking and all of that). Also, the velocity of money has fallen. Once those two pick up...look out.

    If you're buying gold or silver, don't buy certificates, buy coins or bars.
    "We grow up thinking that beliefs are something to be proud of, but they're really nothing but opinions one refuses to reconsider. Beliefs are easy. The stronger your beliefs are, the less open you are to growth and wisdom, because "strength of belief" is only the intensity with which you resist questioning yourself. As soon as you are proud of a belief, as soon as you think it adds something to who you are, then you've made it a part of your ego."

  2. #12
    Arcesso pulli gingerios! Eldanen's Avatar
    Join Date
    Apr 2007
    MBTI
    INTP
    Enneagram
    5w4
    Socionics
    ENTp
    Posts
    697

    Default

    When do I get to print my own money? :<

  3. #13
    Seriously Delirious Udog's Avatar
    Join Date
    Aug 2008
    MBTI
    INfp
    Enneagram
    9w1 sp/sx
    Socionics
    INFp None
    Posts
    5,295

    Default

    Quote Originally Posted by Lateralus View Post
    We're not seeing the effects of this increase in the money supply because banks are contracting the money supply through a lack of lending (fractional reserve banking and all of that). Also, the velocity of money has fallen. Once those two pick up...look out.

    If you're buying gold or silver, don't buy certificates, buy coins or bars.
    Interesting. So it's pretty likely that it will be a year or two before we really start seeing the inflation.

    Where can I begin learning about how to get my hands on at least some gold and protect my money from inflation?

  4. #14
    Senior Member Lateralus's Avatar
    Join Date
    May 2007
    MBTI
    ENTJ
    Enneagram
    3w4
    Posts
    6,276

    Default

    Quote Originally Posted by Udog View Post
    Interesting. So it's pretty likely that it will be a year or two before we really start seeing the inflation.
    If they continue with this course of action, that's likely. However, inflation could be avoided (to a certain extent). As the economy starts to pick up, the Fed would have to raise interest rates and contract the money supply to avoid/limit inflation. The question is, will they? I have my doubts because a booming economy (whether real or imaginary) means votes.

    Where can I begin learning about how to get my hands on at least some gold and protect my money from inflation?
    Just start researching using google.
    "We grow up thinking that beliefs are something to be proud of, but they're really nothing but opinions one refuses to reconsider. Beliefs are easy. The stronger your beliefs are, the less open you are to growth and wisdom, because "strength of belief" is only the intensity with which you resist questioning yourself. As soon as you are proud of a belief, as soon as you think it adds something to who you are, then you've made it a part of your ego."

  5. #15
    Alexander the Terrible yenom's Avatar
    Join Date
    Aug 2008
    Posts
    1,755

    Default

    Its pointless to think about printed money if you can't get your hands on it.
    Come to think of it, who gets the first printed money in this world, because no one gets free money?
    The fear of poverty turns people into slaves of money.

    "In this Caesar there are many Mariuses"~Sulla

    Conquer your inner demons first before you conquer the world.

  6. #16
    Permabanned
    Join Date
    Mar 2008
    MBTI
    ISTP
    Enneagram
    9w8
    Posts
    3,187

    Default

    This paints the picture quite clearly.

    [youtube="UOjnTOjvzxQ"]The global warming/money printing graph[/youtube]

  7. #17
    Senior Member Lateralus's Avatar
    Join Date
    May 2007
    MBTI
    ENTJ
    Enneagram
    3w4
    Posts
    6,276

    Default

    I have some issues with his presentation, specifically him claiming that Nixon ended the gold standard. That's incorrect. FDR ended the gold standard (and seized all gold in the US from private citizens). Between 1944 and 1971 we were under the Bretton Woods agreement. It wasn't really a gold standard and was abandoned because it was clearly not working.

    As for his graph, I don't even know which money supply measure (M0, M1, M2, or M3) he's using. He doesn't say, but I don't think his graph is accurate (it's about as accurate as Al Gore's CO2 graph).

    Money supply - Wikipedia, the free encyclopedia

    "We grow up thinking that beliefs are something to be proud of, but they're really nothing but opinions one refuses to reconsider. Beliefs are easy. The stronger your beliefs are, the less open you are to growth and wisdom, because "strength of belief" is only the intensity with which you resist questioning yourself. As soon as you are proud of a belief, as soon as you think it adds something to who you are, then you've made it a part of your ego."

  8. #18
    Permabanned
    Join Date
    Mar 2008
    MBTI
    ISTP
    Enneagram
    9w8
    Posts
    3,187

    Default

    Quote Originally Posted by Lateralus View Post
    I have some issues with his presentation, specifically him claiming that Nixon ended the gold standard. That's incorrect. FDR ended the gold standard (and seized all gold in the US from private citizens). Between 1944 and 1971 we were under the Bretton Woods agreement. It wasn't really a gold standard and was abandoned because it was clearly not working.

    As for his graph, I don't even know which money supply measure (M0, M1, M2, or M3) he's using. He doesn't say, but I don't think his graph is accurate (it's about as accurate as Al Gore's CO2 graph).
    I also made note of what he said about the gold standard. It would've been more accurate to say that it ended with FDR, but we did bring it back in some form afterward, until Nixon came and completely unpegged from it. So it's not false, since we stopped dealing with gold altogether after Nixon. As for the graph in the vid, it seems to follow the same data presented by the Federal Reserve Bank of St. Louis, which I would hope has reliable data since they are the ones printing money.

  9. #19
    Seriously Delirious Udog's Avatar
    Join Date
    Aug 2008
    MBTI
    INfp
    Enneagram
    9w1 sp/sx
    Socionics
    INFp None
    Posts
    5,295

    Default

    Hmm... so could the graph (in the original post) be narrowly focused on just the St. Louis Reserve instead of the cumulative total of the U.S. Federal banks?

  10. #20
    Permabanned
    Join Date
    Mar 2008
    MBTI
    ISTP
    Enneagram
    9w8
    Posts
    3,187

    Default

    Quote Originally Posted by Udog View Post
    Hmm... so could the graph (in the original post) be narrowly focused on just the St. Louis Reserve instead of the cumulative total of the U.S. Federal banks?
    It's possible. I'll have to look at the website to check what the data represents specifically.

    **EDIT***

    The graph is of the adjusted monetary base. Apparently the data represents all the money in the country. I'm not well versed in this subject, so here goes:

    From answers.com-

    The total amount of a currency that is either circulated in the hands of the public or in the commercial bank deposits held in the central bank's reserves. This measure of the money supply typically only includes the most liquid currencies.

    Also known as the "money base".

    Investopedia Says:
    For example, suppose country Z has 600 million currency units circulating in the public and its central bank has 10 billion currency units in reserve as part of deposits from many commercial banks. In this case, the monetary base for country Z is 10.6 billion currency units.

    For many countries, the government can maintain a measure of control over the monetary base by buying and selling government bonds in the open market.
    yahoo answers comparing the AMB and Laterus's data (both graphs sourced out of the St. Louis Fed Reserve)-
    What's the difference between adjusted monetary base and currency in circulation? - Yahoo! Answers

    And quoting from this pdf on the Fed website-

    I HE MONETARY BASE recently has achieved
    prominence as a measure of monetary influence on
    the economy. Other aggregates often used are the
    money stock defined as cunency plus demand deposits
    held by the nonbank public, money plus time deposits
    at commercial banks, member bank reserves, bank
    credit, liquid assets, and total credit, Other frequently
    used measures of monetary actions include market
    interest rates and so-called marginal reserve measures
    such as member bank excess reserves, borrowings
    from Reserve banks, and free reserves.
    Those who find the monetary base to he a measure
    of monetary influence give two reasons for doing
    so. First, there is a significant body of monetary
    theory which incorporates the monetary base as an
    important link between Federal Reserve monetary
    actions and their ultimate impact on income, output,
    and prices. Second, among all the variables cited
    above as measures of monetary
    actions, the monetary authorities
    have the most complete control
    over the monetary base, and the
    base reflects the actions of these
    authorities more directly than the
    other measures do.
    The full pdf is here- http://research.stlouisfed.org/publi...on_Aug1968.pdf

    The currency circulation graph provided by the St. Louis Fed.


Similar Threads

  1. For how much money would you do this for?
    By Such Irony in forum The Bonfire
    Replies: 38
    Last Post: 09-27-2011, 07:05 PM
  2. How far off are we
    By OrangeAppled in forum The Bonfire
    Replies: 11
    Last Post: 09-23-2011, 01:27 AM
  3. [MBTItm] How intense are we talking about here??
    By Wild horses in forum The NF Idyllic (ENFP, INFP, ENFJ, INFJ)
    Replies: 13
    Last Post: 10-30-2008, 03:14 PM
  4. How much are you going to make this week?
    By Lateralus in forum Politics, History, and Current Events
    Replies: 41
    Last Post: 10-15-2008, 08:16 PM

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
Single Sign On provided by vBSSO