I think BSGloop must work for ASUS or Samsung or one of the other companies that manufacture LCD monitors. I know I've smashed several since attempting to interact with that guy in a sensible way. Unfortunately, it can't be done.
Even by neoclassical standards the changes in FDIC rules for deposit insurance contributed to the 80s bubble. So dsglop doesn't even know his mainstream economics well enough.
Please stop responding to this retard. He isn't going to change his mind. Whats more he as shown himself to be a world class scumbag. You trying to argue to this fool is definitely putting pearls before swine.
Way to be calm about his blatant personal attacks. And Dsglop..I was the one who said JacobSpinney would own the professors..seeing as they say the same crap that you do.
It's really not that hard to own someone who thinks destroying things creates wealth and that the State can create wealth by taking it from others.
@shanedk Oops, hit "Post" too soon...As you can see by my video, this expansion, contrary to what dsglop said, is NOT exponential. In fact, it peters out after awhile. This leads to the Money Multiplier, which is the reciprocal of the reserve rate. If banks hold 10% in reserve, then the amount of new money is multiplied by 1/.1, or 10.
But that is a multiplier of new money being created by the Fed. If no new money is created, then 1/.1 is multiplied by 0, and it's still 0.
@shanedk So the fractional reserve system ONLY creates money if the Fed does. It can't create new money on its own; it only multiplies the new money that has been created by the Fed.
Good old Keynesian "Empiricism". I can do it too! Since the Great Depression ended when a white president was in office. This depression will never end while we have a black president in office. Who needs silly deductive logic.
Under fractional reserve banking private banks can inflate the money supply with out any other government influence. This is only possible under fiat currency, with poor fractional reserve banking laws. But private banks currently can inflate the money supply.
@SpamSpamNEggs I think it's pretty disingenous to call that inflation when all it is is leverage. Same way people call deleveraging "deflation". Not trying to be a dick, just my two cents. Banks can lever up , but if the loans are not payed out, defaults ensues and the bank suffers the damages of it's toxic assets. Did the bank issue paper money? No. Just credit that did not do it's intended job and thus, the bank must take the loss within it's reserves.
@ExquisiteDoom I call adding money to the economy that wasn't there before inflation. You can dress it up any way you want. You can invent new terms for this type of inflation. You can put your blinders on and scream "puppy dogs and butterflies". In the end it's inflation, regardless of how it's prettied up.
@SpamSpamNEggs Is credit money? Why don't we just call it money if it is? I don't understand how crediting money that is not made by yourself would create inflation, and i don't understand why you do not wish to differentiate them for the sake of clarity. Yes, credit will in fact shift the psychology as to what the value of money is but i do not see where actual money appears in the system in non-credit form by a bank (objectively). Inflation occurs from the money supply, not credit expansion.
@SpamSpamNEggs Yes i agree credit expansion today leads to monetary expansions because the central bank will ease the credit problems with more liquidity rather than tightening the belt and that is why we will have inflation. I do not agree that banks that simply provide a brokerage service for the central bank at the moment creates inflation because they are not the FED. Maybe if they owned their own currency they might do so, but that would not be profitable for them in the long run.
Banks are currently operating on a business model, wherein they recieve fresh money-substitute from the Fed (credit easing, open-market purchases), portion it out to their shareholders, customers, employees and favored interests in roughly pre-determined proportions (the legally set interest rate, as discounted by inflation), and can ask for more money at any time, in case they should "happen" to run out (deposit insurance).
I think the problem lies in moral hazard, and the uncertainty inherent to inflation and multi-national trading. The uncertain future value of money, and the
fluctuation of bureaucratic whims in regards to trade barriers, make every investment more risky to a degree proportional to the time involved - thus making short-term, high risk ventures compete at an artificial advantage to more conservative, long-term investments.
@PanzerDivisionBOM Insightful thought. The uncertainty caused by inflation and multi-national trading artificially increases appeal of short-term, high risk ventures.
I can see how this is true. I can also see how badly this mangles traditional investment ideals.
Actually, the money "created" by fractional reserve banking is destroyed when the loan is repaid so there is a level of fluctuation here.
hugesinker 1 year ago
I think BSGloop must work for ASUS or Samsung or one of the other companies that manufacture LCD monitors. I know I've smashed several since attempting to interact with that guy in a sensible way. Unfortunately, it can't be done.
monsieurmitosis 1 year ago
Even by neoclassical standards the changes in FDIC rules for deposit insurance contributed to the 80s bubble. So dsglop doesn't even know his mainstream economics well enough.
Visfen 1 year ago
Wow, what an arrogant prick.
Tyler4981 1 year ago
Please stop responding to this retard. He isn't going to change his mind. Whats more he as shown himself to be a world class scumbag. You trying to argue to this fool is definitely putting pearls before swine.
wizkid2000 1 year ago
@wizkid2000 But if he stops then the retard is going to claim victory.
spol07 1 year ago
Way to be calm about his blatant personal attacks. And Dsglop..I was the one who said JacobSpinney would own the professors..seeing as they say the same crap that you do.
It's really not that hard to own someone who thinks destroying things creates wealth and that the State can create wealth by taking it from others.
rockandrock44 1 year ago 4
The great depression didn't involve a real estate bubble and therefore real estate bubbles don't trigger recessions.
Worldslargestipod 1 year ago
How Fractional Reserve Banking Increases Inflation: /watch?v=V7xyfCZwKqQ
shanedk 1 year ago
@shanedk Oops, hit "Post" too soon...As you can see by my video, this expansion, contrary to what dsglop said, is NOT exponential. In fact, it peters out after awhile. This leads to the Money Multiplier, which is the reciprocal of the reserve rate. If banks hold 10% in reserve, then the amount of new money is multiplied by 1/.1, or 10.
But that is a multiplier of new money being created by the Fed. If no new money is created, then 1/.1 is multiplied by 0, and it's still 0.
shanedk 1 year ago
@shanedk So the fractional reserve system ONLY creates money if the Fed does. It can't create new money on its own; it only multiplies the new money that has been created by the Fed.
shanedk 1 year ago
@shanedk
Which is why the video title seemed to read, how it makes inflation worse, not how this is the source of all inflation.
Surhotchaperchlorome 1 year ago
@Surhotchaperchlorome Correct; it doesn't cause inflation, it only magnifies the inflation that has been caused by the Fed.
shanedk 1 year ago
Good old Keynesian "Empiricism". I can do it too! Since the Great Depression ended when a white president was in office. This depression will never end while we have a black president in office. Who needs silly deductive logic.
DKshad0w 1 year ago 6
Under fractional reserve banking private banks can inflate the money supply with out any other government influence. This is only possible under fiat currency, with poor fractional reserve banking laws. But private banks currently can inflate the money supply.
SpamSpamNEggs 1 year ago
@SpamSpamNEggs I think it's pretty disingenous to call that inflation when all it is is leverage. Same way people call deleveraging "deflation". Not trying to be a dick, just my two cents. Banks can lever up , but if the loans are not payed out, defaults ensues and the bank suffers the damages of it's toxic assets. Did the bank issue paper money? No. Just credit that did not do it's intended job and thus, the bank must take the loss within it's reserves.
ExquisiteDoom 1 year ago
@ExquisiteDoom I call adding money to the economy that wasn't there before inflation. You can dress it up any way you want. You can invent new terms for this type of inflation. You can put your blinders on and scream "puppy dogs and butterflies". In the end it's inflation, regardless of how it's prettied up.
SpamSpamNEggs 1 year ago
@SpamSpamNEggs Is credit money? Why don't we just call it money if it is? I don't understand how crediting money that is not made by yourself would create inflation, and i don't understand why you do not wish to differentiate them for the sake of clarity. Yes, credit will in fact shift the psychology as to what the value of money is but i do not see where actual money appears in the system in non-credit form by a bank (objectively). Inflation occurs from the money supply, not credit expansion.
ExquisiteDoom 1 year ago
@SpamSpamNEggs Yes i agree credit expansion today leads to monetary expansions because the central bank will ease the credit problems with more liquidity rather than tightening the belt and that is why we will have inflation. I do not agree that banks that simply provide a brokerage service for the central bank at the moment creates inflation because they are not the FED. Maybe if they owned their own currency they might do so, but that would not be profitable for them in the long run.
ExquisiteDoom 1 year ago
@SpamSpamNEggs
Banks are currently operating on a business model, wherein they recieve fresh money-substitute from the Fed (credit easing, open-market purchases), portion it out to their shareholders, customers, employees and favored interests in roughly pre-determined proportions (the legally set interest rate, as discounted by inflation), and can ask for more money at any time, in case they should "happen" to run out (deposit insurance).
And they manage to not make it work.
PanzerDivisionBOM 1 year ago
@PanzerDivisionBOM
I think the problem lies in moral hazard, and the uncertainty inherent to inflation and multi-national trading. The uncertain future value of money, and the
fluctuation of bureaucratic whims in regards to trade barriers, make every investment more risky to a degree proportional to the time involved - thus making short-term, high risk ventures compete at an artificial advantage to more conservative, long-term investments.
PanzerDivisionBOM 1 year ago
@PanzerDivisionBOM Insightful thought. The uncertainty caused by inflation and multi-national trading artificially increases appeal of short-term, high risk ventures.
I can see how this is true. I can also see how badly this mangles traditional investment ideals.
SpamSpamNEggs 1 year ago