What does a "small government" look like?

The US share of global GDP is the same today as it was in 1980. USD reserves were replaced by euros once that currency was established under a process that was supported and guided by the US. Not that it really matters, but the USD share of world reserves has been rising since early 2013.

Oh, I was plenty busy at the time. And as you don't seem to understand either, quants in general tend to be kind of narrow, technical, numbers-only sorts of people. Good at pushing a pencil around . Most of the quants who helped run us into the Great Recession are not really in the picture anymore. They're off in therapy someplace instead. Lots of guilt issues to work out.

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Sheesh! Treasury sells at the instant a bid is accepted. Dealers on the other side are acquiring inventory. They may or may not sell either now or next week. That's up to them. You remain far, far out of the loop on how all this goes down.

They aren't QE either. They are simple secondary markets. Nothing to see here.

QE has involved more Treasuries that just 30-year bonds, and it has involved assets other than Treasuries. Your claims are seriously weakened by your need for resort to proprietary, Humpty Dumpty definitions in support of them.

Wrong. Fed credits in general actually tend to be sticky thanks to interest paid on excess reserves. There is meanwhile little motive for a bank to move back into assets that it just had sufficient motive to sell. Theories that require people to behave in a blatantly irrational manner typically tend not to hold very much water.

What? The Fed long ago pulled out all the normal stops on interest rates as a means of heading off deflation by boosting economic activity and recovery. They would rather have had some fiscal help from Capitol Hill along the way, but House Republican ideologues have been blocking all of that for years. There's no choice then but to resort to QE which is a weakly expansionary tool.

Dude, it's been an identity since Mill and Hume first wrote about it. You in your desperate latter-day wailing are not going to change that.

 

Really? Do you recall this by any chance?

Should I suppose that you were referring here to the Organization of Porkbelly Exporting Countries?

 

oil is a large part of international trade, if they move from dollar pricing then a large portion of the demand for dollars dries up

 

the fed is buying $40B a month from somebody, you can claim it is up to them to sell or not, but so far the fed has had its way. Let's be realistic, the fed WILL get those bonds. All they have to do if offer the right price.

.the point is the dealers can turn and sell to the feds whenever they want, addressing your incorrect statement that they would have to wait for an auction

I have been referring specifically to QE3, and the current bond purchasing

Treasury wants cash, sells bond to dealer. Dealer turns and sells bonds to Fed, who paid for the bonds with created currency. Net effect is $40B new money a month, most all of it at treasury. I don't care if the reserves at the dealer earn 0.25%, the net result is new money at treasury.

. I don't care when it all started, I'm pointing out the benefit to treasury.

Appeal to authority, not an argument. You really have no idea what the difference is, do you?

 

Who's talkung about there being now government? Cutting back government reach and getting rid of government entirely are two different things.

 

There's a transparenmtly shabby attempt at covering up earlier contradictory claims on the one hand, plus a revelation of even more shoddy thinking on the other. There are necessary roles in trade and finance that currencies must play. Actors are hired to play these roles based on their track records for such things as safety and convertibility. What currency do you suppose is anytime soon going to outdistance the dollar in such terms? For the dollar to be dropped, there would have to be a better alternative. What is it?

 

According to the Republicans, China controls the world.

There is no better alternative unless another country finds the next important resource. The dollar controls the oil, and oil controls the world. Oil is protected by our military, the strongest in the world.

The dollar ain't going anywhere. Still used in over 60% of all global transactions.

 

I can play this game... what an absolute drivel driven piece of table pounding hackery designed to cover up your incompetence, try actually saying something.

The answer is whatever they want, a basket of currencies, gold, bitcoins,... I don't care about your assertion they cannot because you declare the dollar supreme. The fact is Iran doesn't even deal in dollars anymore.

 

Hmmm. The original $40B was actually all "other assets", not Treasuries. All of that is a part of "various". Meanwhile, monthly QE targets were just lowered from $75B to $65B.

Bulletin: The Fed cannot force anyone to do anything.

This is how markets work. You seem oddly surprised.

No, banks can choose to accept an offer that the Fed has put on the table and they do so when they believe that accepting the terms of such an offer will be in their interest.

Auctions are conducted in light of public debt managers' expected forward cash needs. Assets are being BOUGHT by the private sector at auction and the Fed is not involved. Under QE we have the opposite -- assets are being SOLD by the private sector and Treasury is not involved.

By mischaracterizing them.

There simply is no connection between Treasury auctions and QE operations by the Fed. Treasury gets its cash from auctions. The Fed has no involvement. Large increases in excess bank reserves result from QE. Treasury has no involvement.

So you don't know either the history or the context of any of these operations? Wonderful. Treasury is meanwhile not a for-profit institution. There are no shares traded on the NYSE. Managers there simply deal with the landscape that is presented to them.

Hume and Mill are merely devices through which to point out more irrational folly. Math, history -- the actual topic doesn't seem to matter.

 

hmmm I said what, 3 times now? I am talking about QE3. I don't know, maybe if I use crayon you might get that?

Bulletin: You just fukked up again. I have lost count how times this has been, just do me a favor and stop being such a prick by claiming you have been right about everything
http://www.dailypaul.com/245738/for...take-tarp-money-when-we-didnt-want-or-need-it

I'm surprised that I have to teach you

and yet somehow the fed has not failed in acquiring all the bonds they want...

we have recorded your stupidity on that already, no need to re-emphasize

Treasury gets no benefit from lower interest rates, sure

just stop, you have no clue what it means to mathematically define something

 

Republcians aren't actually adept at much. China has its hands more than full in seeking to control China.

And the most serious threat to that is not China, but a significant comet impact that sharply reduces our productive capacities while leaving others around the world intact. The odds are not good.

 

Really, I don't think it's possible to have a small government under our current leadership. The so called "small government republicans", do not oppose the federal government dictating marriage rights and other things. They only want it out of their personal lives.

Both the far right and far left are big government. They merely different on what exactly they think the government should interfere with.

Then you have the fake small government people like Ron and Rand Paul who bash the federal government, and then turn a blind eye when states interfere in peoples' private lives.

 

Dude, you can't claim that oil pricing is critical and then deny that you ever mentioned oil. As for games, it doesn't appear that you can successfully play any of them.

Bitcoin? Seriously? In any case, The list of what "they" want quite obviously has US dollars at the top with a basket of sub- and regional currencies playing roles in smaller niches where they might be appropriate. This regime is not in any way threatened by the confused and uninformed ramblings of internet financial guru wannabes.

I didn't declare anything. I didn't declare the sky to be blue either, but arguing against it is still the errand of a fool.

A purely political move that amounts to cutting off their nose to spite their face. And actually, they do still deal in dollars and then simply look up equivalents for other currencies. But do go on to describe the terrible damage that has been done to the dollar in this.

 

Why do you think their economy has been destroyed?

If Iran even considers touching oil with non-US. dollars, the U.S. will find some "nuclear devices" on Iran soil that they "need to confiscate."

 

As I have had to point out over and over again, your claims have been consistently wrong, confused, and self-contradictory. You don't actually understand what QE-anything is or how any of it has operated.

Prick? You're losing what little cool you might ever have had, Frankie. And your inapt link is about TARP, not QE. Do you not know the difference or something? All those claims to be talking about QE and then you put up a link to TARP? What a farce!

We? There isn't anyone else involved, Frankie. Lucky for you, as you aren't faring at all well here.. Treasury auctions and QE are separate functions involving different players and done for different reasons. Too complex for you, I suppose.

What benefits do you suppose? Do you think that Treasury operates like some garden-variety household? Lots of pea-brains out there do. The benefits of QE come from the mild stimulus effect it has in the broader economy. Serious people understand that rather easily.

Lost causes are called that because they are lost. MV=PQ is and always has been an identity. You lose. End of story.

 

You can't really be an analyst, no way. The price nor the product doesn't matter, all that matters is that the dollar is the medium of exchange.

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Sarcasm is too subtle for you, noted. I'm sure that when China and Saudi get together and discuss that they want to stop using dollars, they consult you (that was sarcasm), does the University of Phoenix even know you are an alum?

you declared the dollar isn't threatened as reserve currency, and clearly there are threats, only a fool would not acknowledge it

China and Saudi discussing not using the dollar, they want to cut off their own noses too? LOL, stupid

 

and I have corrected you over and over

yeah, when a guy can't even be honest about his own words, well you know, people like that are .... You said the fed can't force anybody to do 'anything', you didn't say QE, but again asking you to be honest is too much I guess, just like when you said sequester was a republican idea and never acknowledged you were wrong.

recorder on, stupidity registered....

oh and he stomps up and down so hard.... why that must make it so

 

I have asked that question in different ways on several different occasions. Conservatives and libertarians have no answer, but I do believe they are willing to cut off their own noses to spite their faces. I think they are just malcontents. 4-year olds who need a nap.

 

I have spent thread after thread with specific cuts & duties of govt clearly defined. I repeat myself ad nauseum. Almost every thread i post has specific suggestions for a streamlined, simpler govt.

It is very simple. Govt should be relegated to securing the rights of the people, defending the border & international treaties, & regulating commerce.. both interstate & international. Very little taxation would be needed in peacetime, & only in times of national emergency, would taxes need to be raised to cover increased military activity.

The american constitution is a pretty clear guideline for this, but it has been ignored, trampled, & violated for decades with increasing disdain.

It is funny, the left ignores suggestions like these, with the assumption that govt HAS to be the solution, & HAS to grow in power, to take care of us. They they act like no one in the small govt circle has any ideas to make it work. This is absurd. Ideas for smaller govt are legion in these forums. They are just ignored & dismissed. Making govt smaller is the easiest thing in the world to do. It is not complicated. Just cut the money.

"Politics should be limited in scope to ware, protection of property, and the occasional precautionary beheading of a member of the ruling class." ~P.J. O'Rourke

 

I'm none of the above, but let's start by gutting two executive departments that have failed: dept. of education and department of energy

Trim Medicare by 33%, make a word limit on the IRS tax code, it's ridiculous.

specific enough for you?

 

Yes way, and over 40 years and more of national and international experience in the profession, I've managed to become satisfyingly wealthy from it. Ah, the stories I could tell.

Please. As was note dearlier, price exists independent of currency. Any currency at all could serve as a medium of exchange. The dollar doesn't have the status it does because it can do any magic tricks as a medium of exchange. It has the role it does because the economy that it represents is the world's largest and most stable. But you are still stuck displaying a fanciful 4th-grade notion that the dollar does what it does only because some Star Chamber somewhere has bestowed status upon it that it could as easily take away again at will. This belief is beyond doltish in the extreme.

China and Saudi Arabia can do whatever they like. They can do bilateral trade for Lego blocks and it won't matter. Short of that, neither of their national currencies amounts to as much as a discernable echo of the dollar. And just by the way, if you were to go look up the top five US grad schools in economcs, you would find two that are on my CV.

More propeller-beanie nonsense. You have to come up with a way to knock down that 22% of world GDP number so that the dollar can fall with it. But other than longshot events such as comet-impacts, you've got exactly nothing. Still. Again. For ever and ever. Amen.

 

No, you've humiliated yourself over and over. Nothing more. That's your upper bound.

 

Chiefly by moron right-wingers who try to replace the US Constitution with the treasonous Bizarro Constitution. Bunch of sociopathic whackos and nothing more. It's a wonder that rational people can stop at merely laughing at them.

 

You've tried that middle school tactic already, simply asserting your superiority by decree, does that cleverness arise from graduating a 'top 5 grad school'?