How The Monetary System Works - And Why It Seriously Needs to Be Replaced

That's the funniest thing about this whole argument. All I'm doing is quoting the Federal Reserve and they think I'm losing the argument. Can't write better comedy. Like these two clowns would ever know more than the Federal Reserve.

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Lol, the game player is still at it. Now it's the Fed has "nothing to do with money creation" instead of the "Fed injects money into the money supply". The dishonest girl can't be stopped.

 

I clearly used the Federal Reserve's official government website as my source multiple times. Here it is again:

There are several standard measures of the money supply, including the monetary base, M1, and M2.

http://www.federalreserve.gov/faqs/money_12845.htm

 

Once again you demonstrate your ignorance of the subject by showing us all how easily confused you get by simple wording.

First of all, it is absolute untrue that they say they do not create money. You made that up. Standard MO. What they said was what you quoted: Fed purchases do not involve "printing" money.

That article in its first sentence explains that when it refers to "printing money" it means: "a situation in which the central bank is effectively financing the deficit of the federal government on a permanent basis by issuing large amounts of currency."

Based on that definition the article says the Fed does not "print money". I disagree that is necessarily what people mean when they use that term, but it you're going to define "print money" to mean that, then nothing I've said is contradicted by your quote. I've never claimed the Fed "is effectively financing the deficit of the federal government on a permanent basis by issuing large amounts of currency."

 

How could the Fed be buying $85 billion dollars of debt each month and paying for it with money that does not exist and not be creating money? Good question?

But no, the Fed has nothing to do with money creation, according to our esteemed "expert". It just fiddles with interest rates and such.

 

Although Federal Reserve purchases of Treasury securities do not involve printing money, the increase in the Federal Reserve's holdings of Treasury securities is matched by a corresponding increase in reserve balances held by the banking system.


The Federal Reserve disagrees with you. And quite honestly I'll side with the Federal Reserve. You are not the most credible person out there and a very dishonest little girl.

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They explain it in detail...

http://www.federalreserve.gov/faqs/money_12853.htm

 

Who is more credible? Ben Bernanke or Iriemon the chick with opinions?

“What the purchases do… is… if you think of the Fed’s balance sheet, when we buy securities, on the asset side of the balance sheet, we get the Treasury securities, or in the previous episode, mortgage-backed securities. On the liability side of the balance sheet, to balance that, we create reserves in the banking system. Now, what these reserves are is essentially deposits that commercial banks hold with the Fed, so sometimes you hear the Fed is printing money, that’s not really happening, the amount of cash in circulation is not changing. What’s happening is that banks are holding more and more reserves with the Fed. ”

- Ben Bernanke


Not trying to be disrespectful, but I'm going to side with Ben Bernanke on this. He seems much smarter than you, not going to lie.

 

I never said the monetary base was not considered a money supply. I said when economists talk about the money supply they are not referencing the monetary base. If they want to talk about the monetary base money supply they will call it base money or the monetary base. Not that hard to grasp.

This way, when someone says "The Fed is injecting money into the money supply" people can understand what they are saying and know what money supply they are referencing. I wouldn't expect you to understand this.

 

Akphi accuses everyone else of dishonesty. So let's set this one up because otherwise he's try to wriggle out of it.

Akphi's post:

Akphi tries to create the impression he's speaking with authority by cited Fed publications. But having read those articles, I know they say no such thing.

So I write: "That is absolutely untrue. The Fed says no such thing. "

To which Akphi responds: " [B]They specifically say those things[/B]. Keep lying. " Post #191.

He's fallen for the bait. Not only has he listed sources and quotes, now he's asserted the Fed specifically say those things.

OK! Let's see the beef. I write: "Let's see the quote with the words you claimed."

An now, in response we get the post from Akphi above.

Anyone see the Fed specifically saying "they are not injecting money in to the system" as Akphi claimed?

Anyone see the Fed specifically saying "their open market operations do not have an affect on the money supply" as Akphi claimed?

Me neither.

Who's the "dishonest girl" who "plays loose with words" and "keeps lying"?

I'll let our members figure it out for themselves. The record is pretty clear by now.

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Bwahahahahaha!

 

Oh good lord. Could you get any more sophomoric? Bernanke is explaining the when people use the phrase "printing money" it doesn't mean they are physically printing bills. Probably to a class of first graders.

Most of us are way beyond that and understand that when we say "print money" we're using short hand for creating fiat money electronically, as I noted about 10 pages ago.

 

Hahahahahaha!! No he isn't. Are you really this dishonest? He is not talking about the physical printing of money at all. He is talking about the crap you are saying and how untrue it is.

 

You've posted the same thing 10x now. Even the mod has started deleting your posts. I've demonstrated how it doesn't support your position or contradict mean.

How many times are you going to repost the same thing, as if that somehow makes you more credible?

As to the continued personal attacks and insults, I rely on the fact that the record amply demonstrates who's the "dishonest girl" here.

 

You are getting more incoherent by the post.

"so sometimes you hear the Fed is printing money, that’s not really happening, the amount of cash in circulation is not changing"

You honestly are trying to say that when Bernanke says the amount of "cash in circulation" he's really talking about the amount in reserve accounts at the Fed?

Have you really sunk to that kind of obfuscation?

 

Absolutely untrue. The paper clearly specified it was talking about whether the theoretical multiplier works directly based on the amount of reserves, and specifically noted that there is an actual multiplier that varies. I've cited the exact language to you before.

Fractional lending multiplies the money. This is really basic stuff for anyone with even a modicum of understanding.

 

No, he's talking about the money supply. And saying what is happening is reserve balances are increasing, lol. Embarrassing girl. Lock it up.

 

They wrote a paper called

Does the money multiplier exist?

Their conclusion...

Your argument is obviously about a different money multiplier that has no effect on the amount of money banks can create. Literally you are saying that the money multiplier exists simply because there are more deposits than reserves, lol. There is pretty much no meaning to your money multiplier, lol. You just can't let go of the fact reserves play no role in the money creation process. When normal people talk about the money multiplier they are talking about the effects of bank lending from a change in reserves. Obviously you have your own definitions for these things, lol. Embarrassing.

 

The fact you think Ben Bernanke is talking about physical currency there is absolutely hilarious. One of your worst mistakes I've seen yet. If you don't apologize after this one, that's bad news. Means you have no respect for yourself.

In bookkeeping and finance, cash refers to current assets comprising currency or currency equivalents that can be accessed immediately or near-immediately (as in the case of money market accounts). Cash is seen either as a reserve for payments, in case of a structural or incidental negative cash flow or as a way to avoid a downturn on financial markets.

 

You are very tiresome, which is, i'm sure, your goal. I'm not interested in dickery with your distortions. Enjoy your propaganda. It is all you have. You got yours, f*** everyone else.

 

No more tired than I am of the fake concern you 1% apologists pretend they have for working Americans when their real goal is to make sure the 1% takes a larger and large share of America's income and wealth.

You're real objective is clear and it's not about helping workers.

 

Nice! I wonder how many people understand that the Wizard of Oz meant Wizard of Ounce... Silver ounce ... Silver slippers if I remember correctly.