Zero progress here.... ie where it matters..... ZEEEEEEEEEEERRRROOOOOOOOOOO......
So what of the concern that the rapid growth of bank reserves will prove inflationary? This concern is misplaced. The Fed can adjust the interest rate it pays on bank reserves, controlling the cost of credit and influencing whether the reserves are lent out.
Only when the bank reserves are lent out does the expansionary credit multiplier process start to work. The Fed controls this process because it controls short-term interest rates.
They are making the typical reification error you always see with these people and are believing the accounting abstractions termed “Reserve Assets” are real and are “lent out”...
Major cognitive errors continue to be made by these people... unqualified...
The Fed is pumping huge amounts of money into the economy. A former New York Fed chief takes a look at what it means (via @bopinion) https://t.co/fDqrFnAYQL
— Bloomberg Economics (@economics) June 22, 2020
Besides the inherent corruption of our current, obsolete, Gold-Standard-relic banking model, it's also unnecessarily difficult to understand.
ReplyDelete“ it's also unnecessarily difficult to understand.”
ReplyDeleteTranslation: “I’m too stupid to understand the current accounting operations so we should go back to the Israelite 10 commandments...”