Yo every week we should have a Higher Learning "Post of the Week"

[OsO]

check this out...

we have an upped thread (barnone) where all nominee-posts will be housed. during our daily perusing of the forum if we see a quote that is worthy of "Post of the Week" then we quote it and post it in the upped thread. Prolific posting only.

then at the end of the week we all vote, and the winning post is officially Post of the Week.

then the four posts that win in a month face off against each other for "Post of the Month."

then the 12 posts that win post of the month get nominated for the ultimate prize... "POST OF THE YEAR."

maybe the winner gets some coli cash or something... or at the minimum intellectual bragging rights

this will encourage more prolific posting, and it'll be fun!

what say you HL

 

[Dusty Bake Activate]

More cockfighting and narcissism? Nah. We trying to move away from that.

 

[OsO]

1) incentives usually improve performance in humans

2) there cant possibly be any more cock-fighting and narcissism in this forum than is already present

but my name is paul, and this is on yall...

 

[VerbalIntercourse]

i think vics fed thread should be post of the month --if not stickied permanently

 

[daze23]

it should just happen organically, like it already does. if a topic's popular, it does numbers and stays up

 

[OsO]

i think vics fed thread should be post of the month --if not stickied permanently

on a related topic, what do you think about the fed monetary policy overall? do you agree with it?

 

[VerbalIntercourse]

on a related topic, what do you think about the fed monetary policy overall? do you agree with it?

I don't.

 

[OsO]

I don't.

so the fed is not implementing good policy in your opinion...

do you think its because of incompetence? do they not know what policies will be successful?

do you think they are setting bad policy on purpose with some ulterior motive?

or do you think policy makers are catering to certain interests, and all the "bad" policy decisions and their effects are products of the policy makers catering to those interests?

or do you think its a combination? if its a combination what do you think weighs most heavily?

im just curious

 

[VerbalIntercourse]

so the fed is not implementing good policy in your opinion...

do you think its because of incompetence? do they not know what policies will be successful?

do you think they are setting bad policy on purpose with some ulterior motive?

or do you think policy makers are catering to certain interests, and all the "bad" policy decisions and their effects are products of the policy makers catering to those interests?

or do you think its a combination? if its a combination what do you think weighs most heavily?

im just curious

No I think they have the best interest of the America citizenry in mind. I think they are incorrect about the means to achieve their objectives.

 

[OsO]

No I think they have the best interest of the America citizenry in mind. I think they are incorrect about the means to achieve their objectives.

the entire american citizenry? really?

so they think the best strategy is to make it easy for big business and banking to have access to funds, and that in turn will create the environment for the funds to trickle down to the middle, working, and lower class?

 

[VerbalIntercourse]

the entire american citizenry? really?

so they think the best strategy is to make it easy for big business and banking to have access to funds, and that in turn will create the environment for the funds to trickle down to the middle, working, and lower class?

No, there is relationship between inflation and short-term unemployment, and they are using that relationship to better Americans. at least they think they are.

Ben is called "Helicopter Ben", because he suggested that a helicopter should by-pass the Liquidity trap of Miserly banks, and give the money directly to the people. That was the motive behind the 2008 Bush stimulus plan. So no, I don't think Ben wants to just simply pump up big business. I think we haven't seen that type of program again because the deficit concerns, the plan seemed to be ineffective, and I don't think that fits the "shovel ready jobs" mindset of the administration.

 

[Dusty Bake Activate]

No, there is relationship between inflation and short-term unemployment, and they are using that relationship to better Americans. at least they think they are.

Ben is called "Helicopter Ben", because he suggested that a helicopter should by-pass the Liquidity trap of Miserly banks, and give the money directly to the people. That was the motive behind the 2008 Bush stimulus plan. So no, I don't think Ben wants to just simply pump up big business. I think we haven't seen that type of program again because the deficit concerns, the plan seemed to be ineffective, and I don't think that fits the "shovel ready jobs" mindset of the administration.

Like leyet understands anything you just said, lol.

Are you acknowledging the existence of a liquidity trap, or are just saying that's how Bernanke sees it?

 

[VerbalIntercourse]

Like leyet understands anything you just said, lol.

Are you acknowledging the existence of a liquidity trap, or are just saying that's how Bernanke sees it?

The liquidity trap is real.

Let me try to help Leyet understand.

the Monetary Base (MB): This is the actual amount of REAL money in the system. In the gold standard, it would simply be the gold

The money multiplier (MM): well.. As you probably know, banks lend out more money than they have. However how much they can lend out is a function of many things. Among many influential factors is the Deposit ratio--how much money is being deposited in banks.

MB * MM = the money supply (M). Call.


MV=YP, V = the Velocity.. It's akin to how many times money changes hands. Y= GPD, output or the number of goods and services in the economy. P= prices.

[(MB*MM)*V]/Y=P

If you play around with that equation, I think you'll have a basic understanding of why the fed does the things that it does.

The fed WANT inflation right now because they believe it will help the economy and get people employed. If "MM" is falling (especially if it's less than 1), then they are going to have a difficult time achieving their inflationary goals.

I mentioned the deposit ratio because in 2008 we had bank runs, those push MM down, the fact that certain financial assets disappeared (by the trillions) also pushed MM down.

 

[Dusty Bake Activate]

The liquidity trap is real.

We are in a situation where interest rates can't get any lower and injections of cash into the banking system seem to be futile in spurring private investment, but being that you an adherent of the Austrian school, I'm surprised that you called it a liquidity trap.

 

[VerbalIntercourse]

We are in a situation where interest rates can't get any lower and injections of cash into the banking system seem to be futile in spurring private investment, but being that you an adherent of the Austrian school, I'm surprised that you called it a liquidity trap.

I'm not an Austrian .

I don't think the Austrian Business cycle theory is somehow at odds with the Liquidity trap.

The ABCT takes the time preference (savers or consumers) of the economy as a given, and predicts malinvestment when the rate of interest is not in line with the economic-wide average Time preference. The liquidity trap is a part of that time preference.