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.
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Saturday, May 16, 2020
Bank Of Canada: Repo Printer Go Brrr! — Brian Romanchuk
Short intro to the Bank of Canada, which most people probably don't have a lot a familiarity with.
One could slog through Bank of Canada communications, and distill the official answer. However, the explanation seems rather obvious: the collapse in economic activity caused the financial system to be looking out over the abyss, and drastic measures were needed to put a net in place."
Piss poor...
Brian, try explain it without resorting to figurative language.. go ahead give it a try...
"caused the financial system to be looking out over the abyss"
"As such, the balance sheet is divided into two sides (or sections). The left side of the balance sheet outlines all of a company’s assets. On the right side, the balance sheet outlines the companies liabilities and shareholders’ equity. "
Matt simply is afraid to try and have a reasonable discussion with Brian cuz he might find out Brian knows more than he does. Matt’s last comment would be something like “What do you expect from a socialist Canadien, we need to invade them and take all their bacon as payment for our military costs”
I'm largely staying out of this one. However, just want to raise a couple points.
One may note that I am in the business of selling books. One of the most successful writers who came from a finance background was Nassim Taleb. Taleb broke into prominence with the book "The Black Swan." Since black swans rarely fly into into financial firms and cause disruption, one might assume that this was figurative language. I fail to see how avoiding figurative language would have improved Taleb's sales figures, since the black swan analogy was a major part of the marketing. As such, unless Matt can demonstrate how avoiding figurative language will raise my sales, I will not concern myself with that critique, and just follow what appears to be best writing practices.
As for the accounting, I suggest you look at the balance sheet as published at Statscan: https://www150.statcan.gc.ca/t1/tbl1/en/tv.action?pid=1010013601
This is really piss poor:
ReplyDelete"why is the Bank of Canada doing this?
One could slog through Bank of Canada communications, and distill the official answer. However, the explanation seems rather obvious: the collapse in economic activity caused the financial system to be looking out over the abyss, and drastic measures were needed to put a net in place."
Piss poor...
Brian, try explain it without resorting to figurative language.. go ahead give it a try...
"caused the financial system to be looking out over the abyss"
Whaaaaaaaaaaattttt??????
" were needed to put a net in place."
Whaaaaaaaaaatttt???
What f-ing net?
What abysss?????
Where is the "abysss!" ????
Where????
Get a grip...
"money printer go brrrrr!"
ReplyDeleteWTF?????
there is no printing Brian it is all accounted for on modern IT systems... helllllooooo!!!!
"It is unclear whether the recent abolition of reserve requirements in the United States will show up in mainstream economics 101 textbooks.)"
ReplyDeleteHas it shown up in MMT textbooks????
Nooooooooo....
"Another set of notable developments are happening on the liability side of the balance sheet"
ReplyDeletethere is no "liability side of the balance sheet"...
there IS a side of the balance sheet where liabilities are recorded... it is the right side or Credit side...
so its not correct to say "the liability side of the balance sheet"...
"As such, the balance sheet is divided into two sides (or sections). The left side of the balance sheet outlines all of a company’s assets. On the right side, the balance sheet outlines the companies liabilities and shareholders’ equity. "
ReplyDeletehttps://corporatefinanceinstitute.com/resources/knowledge/accounting/balance-sheet/
Where does this say "the liability side of the balance sheet" ????
It doesnt....
There is no such thing as "the liability side of the balance sheet"....
Take a f-ing Accounting course....
ReplyDeleteMatt sitting in basement sniping at Brian while the comment section of Brian’s post lies empty.
ReplyDeleteWhy not talk with Brian if you have a problem Matt? He’s a decent guy and might even learn something from you...... or you from him😉
Cmon Matt, be a science guy and try to elevate the discussion................ or just be a dick and call him names from your basement....
"Brian, try explain it without resorting to figurative language.. go ahead give it a try..."
ReplyDeleteMatt: Get a grip...
Matt, what do you mean by "get a grip"? Can you please explain without resorting to "figurative language."
Empty comment section = no entertainment
ReplyDeleteMatt, what do you mean by "get a grip“
ReplyDeleteBingo Greek!
Matt simply is afraid to try and have a reasonable discussion with Brian cuz he might find out Brian knows more than he does.
Matt’s last comment would be something like “What do you expect from a socialist Canadien, we need to invade them and take all their bacon as payment for our military costs”
I'm largely staying out of this one. However, just want to raise a couple points.
ReplyDeleteOne may note that I am in the business of selling books. One of the most successful writers who came from a finance background was Nassim Taleb. Taleb broke into prominence with the book "The Black Swan." Since black swans rarely fly into into financial firms and cause disruption, one might assume that this was figurative language. I fail to see how avoiding figurative language would have improved Taleb's sales figures, since the black swan analogy was a major part of the marketing. As such, unless Matt can demonstrate how avoiding figurative language will raise my sales, I will not concern myself with that critique, and just follow what appears to be best writing practices.
As for the accounting, I suggest you look at the balance sheet as published at Statscan: https://www150.statcan.gc.ca/t1/tbl1/en/tv.action?pid=1010013601
Matt has trouble setting up his chess board and is getting frustrated. A lot of pieces it is.
ReplyDelete16 pieces per dimension?
ReplyDelete