Category: Money Supply
The analysis published under this category are as follows.
Wednesday, August 29, 2007
Spot Gold Prices Rally in London as Asian Stocks Dive, Eurozone Money Supply Surges / Commodities / Money Supply
By: Adrian_Ash
SPOT GOLD PRICES rallied in the first-half of London trade on Wednesday, adding $4 per ounce from the overnight low to hit $666 after Asian stock markets ended the day sharply lower.
A UK hedge fund said it may have to liquidate $6 billion in assets due to the ongoing global credit crunch. The European Central Bank announced that growth in its M3 measure of the Eurozone's money supply surged to a quarter-century record in July, rising by 11.7% from a year earlier compared with 10.9% growth in June.
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Monday, August 27, 2007
Bottlenecks and Monetary Policies: More Economic Fallacies that Damage Economies / Economics / Money Supply
By: Gerard_Jackson
The cry is going up from our economic commentariat that the Australian economy is running into “production constraints” and that this in turn will drive up interest rates. It is also argued that this situation is likely to be compounded by the inflationary effects of rising wages. This nonsense, readers, is what passes for economic wisdom, not only in the Australian media but also the world-wide media. Listen out for the same arguments appearing more and more frequently in the US as the Bush boom gets close to its economic economic denoument, unless the Fed unexpectly slaps on the monetary brakes .Read full article... Read full article...
Tuesday, August 21, 2007
US Financial Markets Rocked — What Is Really Happening / Stock-Markets / Money Supply
By: Gerard_Jackson
Last week I alerted readers to the possibility of a cut in the Fed funds rate. As sure as God made little apples, a cut is exactly what we got — except that it was the discount rate that was cut. For those of you who gave a sigh of relief at the Fed's “timely intervention”: take a deep breath because at some time in the future we will get a rerun of this financial fiasco and the Fed won't be able to stop it without igniting a severe inflation. Assuming for a moment that the Fed took this risk, the result in all likelihood would be a run on the dollar followed by an immediate increase in the funds rate on the heels of which would emerge an unavoidable recession.Read full article... Read full article...
Tuesday, July 31, 2007
Global Money Supply / Economics / Money Supply
By: Mike_Hewitt
This essay makes comparisons between the money supply of 26 selected economic areas and discusses the ratios between the value of official gold reserves to outstanding currency.
For the purposes of this essay, the Euro-Zone includes the thirteen countries that use the Euro currency: Austria, Belgium, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, the Netherlands, Portugal, Slovenia and Spain. All other economic areas are individual countries.
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Tuesday, July 24, 2007
Composition of the U.S. Money Supply / Economics / Money Supply
By: Mike_Hewitt
How much U.S. money is in circulation? Printed currency and coins amount to less than US$800 billion. This represents only a small portion of the total money supply. The following essay shows the composition of various monetary aggregates used by the Federal Reserves to define the total amount of money available.Read full article... Read full article...
Saturday, July 21, 2007
Return Of The Gold Standard / Economics / Money Supply
By: James_West_2
We humans are remarkably committed to self delusion.
From the personal level to the most powerful government on earth, we contrive realities with distorted perspectives so we can execute ideas that would otherwise cause us to hesitate if we were to objectively and honestly consider their moral implications. The moral code is constantly being revised to accommodate current events.
World War I is a perfect example.
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Wednesday, July 11, 2007
The Crack-up Boom Series Part V, Introduction - It's Bigger Than Just the dollar! / Economics / Money Supply
By: Ty_Andros
For greater insight into our publication, have a look at the Overview of Tedbits . It helps current and potential subscribers understand our mission in serving you. It also gives a broad description of what's unfolding globally and what you can expect from Tedbits as a regular reader.
Crack-Up Boom Series Intro
The Crack Up Boom series is exploring the unfolding “Indirect Exchange” (as detailed by Ludvig Von Mises), that dollar holders will be using to exit their holdings now and eventually is will be followed by all holders of fiat currency holdings no matter which country is perpetrating the “crime” of confiscation of wealth through the printing and credit creation process that all such monetary schemes evolve into.
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Tuesday, July 03, 2007
Credit as a Public Utility: the Key to Monetary Reform - Part 2 / Economics / Money Supply
By: Richard_C_Cook
A continuation of Richard C Cook's two part article on reforming the US Monetary System - Click Here for Part 1
THE AMERICAN EXPERIENCE
Monetary matters were clearer in England's American colonies. From the founding of Jamestown in 1607 to late in the American Revolution in 1779 there was not a single bank in North America. Goods were bartered, coinage entered the colonies through trade, and even Indian wampum was utilized. But all this was insufficient, so the colonial governments began to issue their own paper money. Notes were issued to landowners who use their land as collateral, or, in Virginia, to owners of tobacco in government warehouses.
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Tuesday, June 26, 2007
Credit as a Public Utility: the Key to Monetary Reform - Part 1 / Economics / Money Supply
By: Richard_C_Cook
We live in an era of deregulation, where economists and politicians speak of “the market,” not government, as the appropriate vehicle for economic decisions. President Ronald Reagan said in his 1981 inaugural address, “Government is not a solution to our problem, government is the problem.”Read full article... Read full article...
Monday, June 25, 2007
Home Equity Extraction - Sources and uses of "free cash" / Housing-Market / Money Supply
By: Tim_Iacono
The update to the Greenspan/Kennedy report (.pdf) on home equity extraction was a real page-turner. Seriously, it was pretty good. Economists at the Fed have once again demonstrated why they get paid the big bucks to collect data, assemble tables, and produce fifty page reports with appendices, references, and footnotes all in the proper places.
Unfortunately, as is usually the case, they didn't come to many conclusions or provide nearly enough interesting charts.
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Friday, June 22, 2007
Cash is Not King - What Have You Bought For Me Lately? / Economics / Money Supply
By: Andy_Sutton
In the 1930's during the Great Depression, there are literally thousands of cases where people stuffed money under their mattresses because they were scared of putting it in banks. They had confidence that when they needed the money six months or a year later that it would buy them what they needed to survive. The fact that we were in a deflationary depression validated their strategy. In a deflationary environment, cash is King. Hold onto it and it will buy at least as much as it did when you stuffed it under the bed, maybe even more. I think that a few too many Americans paid a little too much attention to these stories and automatically assume that the same strategy will work today.Read full article... Read full article...
Wednesday, June 20, 2007
Interest Rate Rises - Damned If You Do... / Interest-Rates / Money Supply
By: Adrian_Ash
"...The central bank in New Zealand now presents the absurd spectacle of raising its lending rates while trying to depress its own currency by selling it in the open market..."
IF YOU WORRY that the US Fed might be caught between a rock and a hard place – squeezed between inflation on one side and plunging house prices on the other – then pity the poor central bankers in London and Auckland .
Every time they raise their interest rates, house prices increase!
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Tuesday, June 05, 2007
Economist Illustrates Why the Fed Should First Do No Harm / Economics / Money Supply
By: Paul_L_Kasriel
In the June 4th edition of The Wall Street Journal, Greg Ip has written a piece explaining why the National Income and Product Account data, the data from which GDP estimates are derived, can be confusing and erroneous for various reasons (see "Options Hinder Efforts to Gauge Economic Growth,").Read full article... Read full article...
Sunday, June 03, 2007
The International Consequences of the Federal Reserve / Economics / Money Supply
By: Gerard_Jackson
I have written numerous times on the consequences of the Fed's loose monetary policy and how it can aggravate the current account deficit. Until recently figures confirmed my worst fears that the current account was racing along unabated. But what else should one expect given the monetary boom that the Fed unleashed. Now the actual CAD figures don't matter -- what matters is the trend and the reason for it. The reason has already been established and is now monetary history.Read full article... Read full article...
Wednesday, May 30, 2007
The Changing Face of the US Dollar from Tangible Asset to a Fiat Currency / Economics / Money Supply
By: Mike_Hewitt
The US dollar changed from a currency backed up by a tangible asset to a fiat currency. That being a paper note backed up by governmental promises. By looking at the history of American paper money one can clearly see the distinction.
Compare the images of the following historic dollar bills to those in your wallet today. Certain previously displayed phrases have been simply eliminated.
Monday, May 28, 2007
Monetary Theory Of E.C. Riegel / Economics / Money Supply
By: Christopher_Quigley
IntroductionIn a life spanning over 70 years one of the greatest students of money and its meaning was the American E.C. Riegel. Many regarded him as a genius for his understanding of the nature and functioning of money as a human and social institution. This essay is an introduction to his main ideas on this subject as increasingly people are beginning to realise the need for a more stable monetary unit. In essence in his book "Flight From Inflation" he identified money as the mathematics of value and argued that for a democracy to thrive he believed the "money power" must be free.
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Friday, May 25, 2007
Sound Money Sound Society / Economics / Money Supply
By: Christopher_Quigley
This article is a summary of work by Professor Antal. E Fekete , Professor Heinrich Rittershausen and Ferdinand Lips.
Summary
The World's developing financial crisis is totally inter-connected with a crisis of monetary theory and until we change how money works we will change nothing. What is required is a return to a solid monetary standard that is also a return to a more moral standard, which protects real work and long-term monetary value.
Thursday, May 24, 2007
Paper, Rock, Gold : Why does Money have Value? / Economics / Money Supply
By: Mike_Hewitt
There are two commonly held views as to why money has value:
1. People are willing to accept it as payment (social convention)
2. The government says so (government decree)
The first reason, that being that money has value because people are willing to accept it as payment is nothing more than a circular argument. It states that money has value because it is accepted. Why is it accepted? …because it has value!
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Wednesday, May 23, 2007
How is Money Created? / Economics / Money Supply
By: Mike_Hewitt
The Federal Reserve Bank of Chicago used to publish a pamphlet entitled Modern Money Mechanics , which explains M1, M2, and M3. It is a truly fascinating read. That pamphlet is no longer in print, and the Chicago Fed has no plans to re-issue it. However, electronic copies are available (see link ).
In it, the process by which the Fed creates money “out of thin air” is detailed. Consider the opening paragraph:
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Tuesday, May 22, 2007
When will the Bush Credit Driven Boom Crack? / Economics / Money Supply
By: Gerard_Jackson
Unfortunately every credit fuelled boom ends in recession. Although no one can really predict the actual timing of a recession one can look out for certain danger signals, the major one being manufacturing. Once manufacturing finds itself in a profits squeeze rising costs start to bite into profit margins it will have no choice but to discharge labour, cut back on investment and reduce output.
After a while the manufacturing contraction will reach down into the consumption stages of production, at which point it will be officially declared that the economy has tanked.
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