Unemployed need not apply

[danielpalos]

I'm saying bank lending increases the money supply.

how is that possible if the fed is decreasing the money supply?? Notice that you are unable to answer the question directly?

yes; lending on a fractional reserve basis or "no reserve" basis "creates" new money.

they are two different "operations" and forms of transaction.

 

[EdwardBaiamonte]

Leave the Fed out of it for now.

its absurd to leave the Fed out when their entire job is to size the money supply!! while banks could care less about the money supply

Pretend it's 1912 and the Fed doesn't exist.
I put fifty $20 gold coins in a brand new bank. It's their only deposit.
They loan out forty five coins. Did this increase the money supply? Why? How?

why not pretend its 2015 rather than make up fairy tale from long ago with no relevance to today???? Pretend??????? Why?????

Because, pretending that something that isn't part of the discussion doesn't exist yet will make it easier to explain money supply to someone who clearly doesn't have a clue.

if I do't have a clue why is it you who is openly pretending and openly not answering direct questions??

 

[danielpalos]

Leave the Fed out of it for now.

its absurd to leave the Fed out when their entire job is to size the money supply!! while banks could care less about the money supply

banks should have to care if they are not well positioned to establish a hedge fund to cover the downside of this "speculative investment".

 

[EdwardBaiamonte]

Leave the Fed out of it for now.

its absurd to leave the Fed out when their entire job is to size the money supply!! while banks could care less about the money supply

Pretend it's 1912 and the Fed doesn't exist.
I put fifty $20 gold coins in a brand new bank. It's their only deposit.
They loan out forty five coins. Did this increase the money supply? Why? How?

why not pretend its 2015 rather than make up fairy tale from long ago with no relevance to today???? Pretend??????? Why?????

Because, pretending that something that isn't part of the discussion doesn't exist yet will make it easier to explain money supply to someone who clearly doesn't have a clue.

why not explain how bank lending creates new money when Fed at same time is shrinking money supply??

 

[danielpalos]

Leave the Fed out of it for now.

its absurd to leave the Fed out when their entire job is to size the money supply!! while banks could care less about the money supply

Pretend it's 1912 and the Fed doesn't exist.
I put fifty $20 gold coins in a brand new bank. It's their only deposit.
They loan out forty five coins. Did this increase the money supply? Why? How?

why not pretend its 2015 rather than make up fairy tale from long ago with no relevance to today???? Pretend??????? Why?????

Because, pretending that something that isn't part of the discussion doesn't exist yet will make it easier to explain money supply to someone who clearly doesn't have a clue.

if I do't have a clue why is it you who is openly pretending and openly not answering direct questions??

dear, if one side of an equation is true then so should the other side.

 

[danielpalos]

Leave the Fed out of it for now.

its absurd to leave the Fed out when their entire job is to size the money supply!! while banks could care less about the money supply

Pretend it's 1912 and the Fed doesn't exist.
I put fifty $20 gold coins in a brand new bank. It's their only deposit.
They loan out forty five coins. Did this increase the money supply? Why? How?

It should increase the money supply by the amount loaned. The amount on deposit is still a credit balance for the depositor in addition to the "hard money" loaned out.

 

[Toddsterpatriot]

Leave the Fed out of it for now.

its absurd to leave the Fed out when their entire job is to size the money supply!! while banks could care less about the money supply

Pretend it's 1912 and the Fed doesn't exist.
I put fifty $20 gold coins in a brand new bank. It's their only deposit.
They loan out forty five coins. Did this increase the money supply? Why? How?

why not pretend its 2015 rather than make up fairy tale from long ago with no relevance to today???? Pretend??????? Why?????

Because, pretending that something that isn't part of the discussion doesn't exist yet will make it easier to explain money supply to someone who clearly doesn't have a clue.

if I do't have a clue why is it you who is openly pretending and openly not answering direct questions??

Because your direct question is stupid.
The Fed is not shrinking the money supply.
I know you don't have a clue about money supply, based on your past comments.
Based on your new comments, it's clear you're not interested in learning.
Very liberal of you.

 

[Toddsterpatriot]

Leave the Fed out of it for now.

its absurd to leave the Fed out when their entire job is to size the money supply!! while banks could care less about the money supply

Pretend it's 1912 and the Fed doesn't exist.
I put fifty $20 gold coins in a brand new bank. It's their only deposit.
They loan out forty five coins. Did this increase the money supply? Why? How?

why not pretend its 2015 rather than make up fairy tale from long ago with no relevance to today???? Pretend??????? Why?????

Because, pretending that something that isn't part of the discussion doesn't exist yet will make it easier to explain money supply to someone who clearly doesn't have a clue.

why not explain how bank lending creates new money when Fed at same time is shrinking money supply??

Explain what the Fed is doing to shrink the money supply.
Be specific.

 

[EdwardBaiamonte]

Explain what the Fed is doing to shrink the money supply.
Be specific.

their mandate is to shrink and expand money supply as needed. They do it many ways but most importantly they do it through open market operations.

Did you think the Girl Scouts controlled our money aggregates??

 

[Toddsterpatriot]

Explain what the Fed is doing to shrink the money supply.
Be specific.

their mandate is to shrink and expand money supply as needed. They do it many ways but most importantly they do it through open market operations.

Did you think the Girl Scouts controlled our money aggregates??

their mandate is to shrink and expand money supply as needed.

They haven't targeted money supply numbers since the 80s.

Did you think the Girl Scouts controlled our money aggregates??

No, I think the money supply grows when banks make new loans. And shrinks when loans default or are repaid.
Did you ever figure out the parts of M2? If you did, you might be less confused.

 

[EdwardBaiamonte]

They haven't targeted money supply numbers since the 80s.

nobody said they did!!

 

[EdwardBaiamonte]

No, I think the money supply grows when banks make new loans. And shrinks when loans default or are repaid.

I see you're still pretending its 1912 and the Fed doesn't exist!! Why not pretend its 2015??

 

[Toddsterpatriot]

They haven't targeted money supply numbers since the 80s.

nobody said they did!!

You did.

their mandate is to shrink and expand money supply as needed.

Right there.

 

[Toddsterpatriot]

No, I think the money supply grows when banks make new loans. And shrinks when loans default or are repaid.

I see you're still pretending its 1912 and the Fed doesn't exist!! Why not pretend its 2015??

Why are you pretending you understand money supply?
Why don't you post the components of M2?
If you can manage that, I'll be happy to show you where you've been wrong all this thread.

 

[EdwardBaiamonte]

They haven't targeted money supply numbers since the 80s.

nobody said they did!!

You did.

their mandate is to shrink and expand money supply as needed.

Right there.

targeting it another matter entirely. Today they look at GDP, unemployment, inflation, markets etc and decide to raise and lower rates from there without actually targeting money supply directly.

 

[EdwardBaiamonte]

No, I think the money supply grows when banks make new loans. And shrinks when loans default or are repaid.

I see you're still pretending its 1912 and the Fed doesn't exist!! Why not pretend its 2015??

Why are you pretending you understand money supply?
Why don't you post the components of M2?
If you can manage that, I'll be happy to show you where you've been wrong all this thread.

you said bank loans determine money supply and failed to mention Fed role?? Care to correct that?? That's where you've been wrong all this thread. If I had been wrong you would have pointed it out long ago!

 

[Toddsterpatriot]

No, I think the money supply grows when banks make new loans. And shrinks when loans default or are repaid.

I see you're still pretending its 1912 and the Fed doesn't exist!! Why not pretend its 2015??

Why are you pretending you understand money supply?
Why don't you post the components of M2?
If you can manage that, I'll be happy to show you where you've been wrong all this thread.

you said bank loans determine money supply and failed to mention Fed role?? Care to correct that?? That's where you've been wrong all this thread. If I had been wrong you would have pointed it out long ago!

you said bank loans determine money supply

Did I say that? Where?

Are you going to provide the components of M2?

 

[EdwardBaiamonte]

No, I think the money supply grows when banks make new loans. And shrinks when loans default or are repaid.

I see you're still pretending its 1912 and the Fed doesn't exist!! Why not pretend its 2015??

Why are you pretending you understand money supply?
Why don't you post the components of M2?
If you can manage that, I'll be happy to show you where you've been wrong all this thread.

you said bank loans determine money supply and failed to mention Fed role?? Care to correct that?? That's where you've been wrong all this thread. If I had been wrong you would have pointed it out long ago!

you said bank loans determine money supply

Did I say that? Where?

Are you going to provide the components of M2?

notice you have to change the subject? Why not tell us how the Fed in not involved in determining the money supply??

 

[Toddsterpatriot]

No, I think the money supply grows when banks make new loans. And shrinks when loans default or are repaid.

I see you're still pretending its 1912 and the Fed doesn't exist!! Why not pretend its 2015??

Why are you pretending you understand money supply?
Why don't you post the components of M2?
If you can manage that, I'll be happy to show you where you've been wrong all this thread.

you said bank loans determine money supply and failed to mention Fed role?? Care to correct that?? That's where you've been wrong all this thread. If I had been wrong you would have pointed it out long ago!

you said bank loans determine money supply

Did I say that? Where?

Are you going to provide the components of M2?

notice you have to change the subject? Why not tell us how the Fed in not involved in determining the money supply??

Why not tell us how the Fed in not involved in determining the money supply??

I said the Fed was not involved? I'll pay you $10,000 if you provide the post where I made that claim.

Now, let's get back to my original claim, the money supply increases when banks make loans and shrinks when those loans are defaulted upon.

If you knew what made up M2, you'd realize your error.

 

[Toddsterpatriot]

If you don't know how loans increase the money supply, just say so.

banks make loans all the time every day and it does not increase the money supply unless the Fed lets them make enough loans to increase the money supply. If loans always increased the money supply inflation would be 10,000% not 1.78%

banks make loans all the time every day and it does not increase the money supply unless the Fed lets them make enough loans to increase the money supply.

If a bank makes a $10 loan, is that enough to increase the money supply?