tag:blogger.com,1999:blog-2761684730989137546.post1587019441215145801..comments2024-03-18T19:09:18.510-04:00Comments on Mike Norman Economics: Yahoo News: Who makes money off your student loans? You might be surprisedmike normanhttp://www.blogger.com/profile/03296006882513340747noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-2761684730989137546.post-81927036413110910892013-06-23T20:09:48.342-04:002013-06-23T20:09:48.342-04:00Not "banker hate" - "usury for sto...Not "banker hate" - "usury for stolen purchasing power including from the borrowers" hate.<br /><br />But let's assume that lending, instead of just spending, fiat into existence is morally legitimate for the monetary sovereign UNDER SOME CIRCUMSTANCES. Then surely poor students are to be given interest-free loans? If not outright grants?Anonymoushttps://www.blogger.com/profile/13859046687902645077noreply@blogger.comtag:blogger.com,1999:blog-2761684730989137546.post-61640096849185250372013-06-23T09:10:10.409-04:002013-06-23T09:10:10.409-04:00We're thinking along the same lines here Roger...We're thinking along the same lines here Roger. I posted the following comment on Brad DeLong's latest post on QE:<br /><br /><i>...</i><br /><br /><i>QE without an expansionary fiscal policy is a contractionary policy. As we know, the Fed has been making abnormally large "profits" recently. That's bad for the economy. The central bank probably should not be earning profits during a recovery, since that means more money is flowing into the Fed from the private sector than is flowing out of it. (All of those MBS have cash flows attached to them, and after the Fed buys one the cash flows to the Fed instead of to the previous private sector owner of the MBS.) It's true that the Fed remits much of the profit to the Treasury, but Congress has used those profits to pay down debt rather than expand public sector consumption and investment.</i><br /><br /><i>So Unconventional Monetary Policy + Crazy Republican Congress = Unconventional Net Government Contraction.</i><br /><br /><i>The biggest enterprise in the known universe - the United States Government - has been using both its fiscal arm and monetary arm in a joint project to hoover dollars out of the private sector while shrinking its own contribution to demand, employment and production.</i><br /><br /><i>I don't understand why people have such a hard time remembering that QE programs are programs that purchase *financial assets*, and thus they remove dollars from the economy as well as injecting them. If I hear one other news report that describes QE as "pumping money into the economy" my head is going to explode.</i>Anonymousnoreply@blogger.com