An economics, investment, trading and policy blog with a focus on Modern Monetary Theory (MMT). We seek the truth, avoid the mainstream and are virulently anti-neoliberalism.
.@kocherlakota009 has a great rejoinder to those who argue that U.S. rates are "artificially" low. https://t.co/DWfSmJI6BV— Joe Weisenthal (@TheStalwart) April 21, 2016
.@kocherlakota009 has a great rejoinder to those who argue that U.S. rates are "artificially" low. https://t.co/DWfSmJI6BV
Guilt by association. https://en.wikipedia.org/wiki/Association_fallacy
I'm not saying they are guilty of anything... I'm saying they are morons...
Matt, Draghi has really just announced another round of QE.What's the best play here?
"I'm not saying they are guilty of anything... I'm saying they are morons..."wanna be on these people's side???I mean if you share some policy views with them does not mean you are wrong, even if they are moron.They can be right (or wrong) for different reasons that they think.
Foot, probably more status quo there but I dont know the details...Are they just "rolling them over" or are they actually expanding their "balance sheet"? Are they buying govts or corporates?the way I look at it, the fiscal agent over there is intervening by removing some financial assets from the non-govt in order to 1. fund itself and 2. comply with some sort of moron reasonings... Might see some EUR selling as a short term reaction from traders...
Ignacio, Maybe this way: Stochastic approach and/or metaphor = NO understandingStochastics and metaphor are both tip-offs....
Hey maybe the metaphor is the semantic form of the tip-off and stochastics is the mathematical form of the tip-off....
The proper way to lower interest rates in fiat would be equal fiat distributions* to individual citizen accounts at the central bank. Then no one could complain about low rates, could they?Instead and unjustly, interest rates are lowered by loans to and asset purchases from depository institutions for the sake of the banks, etc. themselves and for the sake of the most so-called creditworthy, the rich.And we wonder why we have gross inequality? When money creation is for the sake of the rich? With "trickle down" or higher interest rates for the rest?*financed with sovereign coin (eg. "the trillion dollar coin") deposits at the central bank.
wanna be on these people's side???MMT solution is low rates to keep long term rates low in order to encourage housing investment through low mortgage rates, which is a major driver of investment and is lagging in the US, while simultaneously loosening the fiscal stance in order to counter lagging demand by increasing incomes, since income is the chief driver of investment.Janet Yellen should be explaining this to the people in government that hold the purse strings. The US is nowhere near capacity based on parsing the unemployment numbers. U3 alone is misleading here.
It's going to be corporates Matt.
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