What does she mean here by the figurative “pressure”? Can one of you Art Degree people help figure it out? Throw me a bone here...
"As shown in Figure 9, IOER is currently set at 10 basis points, well below the top of the target range. If undue downward pressure on rates were to emerge, the Federal Reserve could adjust IOER higher to lift overnight rates. Even if this downward pressure persisted, the ON RRP would maintain a strong floor by providing an alternative investment for money market participants and, if needed, by reducing the quantity of reserves held by the banking system to relieve pressure on bank balance sheets.”
I’m reading that sentence over and over.... to me it can read like she thinks “banks lend the reserves!” and by offering an alternative reverse repo facility it can remove “pressure” for banks to “lend the reserves” at lower rates... or I guess maybe not....
A Return to Operating with Abundant Reserves
December 01, 2020
Lorie K. Logan, Executive Vice President
Chimpanzees pulling levers is my preferred metaphor for these officials.
ReplyDeleteHi Matt: I read this as jumbled pseudo-scientific language not artsy language. What I do not get is this part: "Even if this downward pressure persisted,"
ReplyDeleteIn what world does that occur?
I think the whole paragraph is just intended to indicate to people that negative real rates will be avoided.
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ReplyDelete"What does she mean here by the figurative “pressure”? Can one of you Art Degree people help figure it out? Throw me a bone here..."
ReplyDeleteWhy don't you ask the "half Masters in Science" people, Matt? You know, your kind of people:)
If you were to have a drink every time Matt, here, mentioned "figurative" or "you Art Degree people," make no mistake you'd be now a prime candidate for a liver transplant :(
https://apps.apple.com/us/app/drink-roulette-drinking-games/id1107872203
lastgreek: but Matt is totally correct that this makes no sense at all, and his interpretation is correct. What this means is that one has to decide whether the language used was:
ReplyDelete1) An actual representation of what the speaker believes (however poor and illogical those quantity theory beliefs are); or
2) Just an attempt to obfuscate.
I think the latter is more likely. I suppose it takes some "artsy" skill to write something so completely unintelligible while exuding that noxious aura (artsy metaphor warning) of pseudo-expertise. As a civil servant I am quite impressed by the opaqueness of this bureaucratic language -- really it is like something out of YES, Minister.
Marian,
ReplyDeleteMatt is just plyayin' around. The Fed, notwithstanding their "artsyspeak", has been calling for more stimulus for many months now, and he knows that well.
I’m not playing around... you guys keep trying the same dialogic thing and are getting nowhere ... put a clock on it already... it’s not working...
ReplyDeleteWe have a major cognitive deficiency in these people we are putting in charge of regulating our financial systems.... the problem is in their training...
“ I think the latter is more likely.”
ReplyDeleteThere is no evidence of that Marian... the people in cognitive science say the cognitive process defaults to reification when the person doesn’t understand the abstraction... or defaults to the literal if they don’t understand the figurative...
“Banks lend out the reserves” is such a reification error... it can’t be corrected via dialogic methods that rely on even more figurative language... you guys have been failing at this for over 10 years now that I have been observing this...
“Bond vigilantes!”, etc : all figurative language
ReplyDelete“Printin’money!” Figurative language...
ReplyDeleteGive it up already ...
ReplyDeleteProper use of the word “pressure”:
ReplyDeletehttps://www.nbcnews.com/science/space/spacex-test-launch-ends-fiery-explosion-elon-musk-still-considers-n1250623
“ Musk tweeted shortly after the prototype's explosion, congratulating the SpaceX team for collecting the necessary data.
"Fuel header tank pressure was low during landing burn, causing touchdown velocity to be high & RUD, but we got all the data we needed!" Musk tweeted. "Congrats SpaceX team hell yeah!!"
There is no term “pressure” in the scientific disciplines of Finance and Accounting.....
PV=mRT in fluid dynamics...
AOC and the Squad under pressure...
ReplyDeleteThe Fed promulgates the risk free interest rate by decree....
ReplyDeleteThere are no FIGURATIVE “bond vigilantes!”...
The only time the Fed ever lost control of the risk free rate was in sept 2019 when the Art Degree morons there imposed a RRR of 10% then the same Art Degree morons set system Reserves below their own 10% of system deposits level...
That’s the only time it ever happened... and it was because the Art degree morons there can’t apply 8th grade algebra...
This is proper artistic use of the figurative “pressure”:
ReplyDeletehttps://youtu.be/fCP2-Bfhy04
Or here:
https://youtu.be/ISveIzgq_kQ
Both great performances...
Billy Gibbons for Fed chairman. They need a sharp dressed man in dark sunglasses to personify obfuscation.
ReplyDelete"I’m not playing around..."
ReplyDeleteYeah, you do that here at times -- play around. Like just recently when you wrote about if trump can "stop the steal." What steal was is that, Matt? The only stealing (no parentheses) since November 4th going on is the trump family's grifting. Incredible when you think about it. Since the election, you Americans have had about 100,000 more covid deaths and not a peep from the grifter. Only concern on his mind from what we see by his tweeting is himself... and the on-going grift of course.
https://www.nytimes.com/2020/12/18/us/politics/trump-money-future.html
https://www.politico.com/news/2020/12/14/trump-republicans-georgia-fundraising-445207
Machine democrat goons stuffing the ballot boxes in their cities for Biden... been going on for 100 years.... looks like trumps only hope is for GOP electors to reject the fraudulent vote and elect Trump...
ReplyDeleteSee what I mean, Marion, about Matt playing around. No way he believes that shit. :)
ReplyDeleteQuick opinion: Biden beat him by almost 8 million votes (popular). In a sane and reassuring outcome, Biden (or Sleepy Joe if you prefer) would have trounced the grifter by 10s of millions of votes. Yeah, there's barely a dime's worth of a difference between the two corporate parties, and there's plenty not to like with the current batch of Democrats, but is the alternative a crazy, selfish, totally incompetent asshole? WTF!
All gop legislators have to do is seat their own electors if they think the dem vote was fraudulent... I dont see what the big deal is...
ReplyDeleteDo a quick investigation, if there is fraud then toss out the vote and seat your own legislative electors ..done deal...
If you remove California, Biden's margin isn't that awesome.
ReplyDelete