money supply confirming Peter Schiff

[clawtheunconquered]

i meant above production... of course there are certain other psychological factors involved Keynesians fail to understand... as @internarchy said, more money chasing fewer goods, as these fewer goods seeing a demand for their product will then raise their prices

[EMPIRE0FLIES]

Schittreport is mike norman and all his broke friends feeble attempt to discredit Schiff. Just ignore them like everyone else does.

[Xasew]

"They held roughly $800 billion in their bank accounts."

Private banks hold reserves at the Fed, they aren't the Fed's own reserves.

"The money supply ... prior to that time, had not increased."

Wtf? Since its creation the Fed has expanded the money supply pretty much nonstop. M2 almost doubled in the 80s...

"The Fed has no ties ... it's a private business trying to make a profit."

No it's not. ~95% of the Fed's profits are given to the treasury. Even GAAP tells us the Fed isn't private.

[ParetoOptimality]

@Xasew

nice pick ups friend.

it just tells you how ignorant these peasants are now in the US - and there are so many of them around now, that it threatens the very ability of the country to function properly.

[silverkeiser]

I have a question for Peter Schiff - since I can't get a hold of him, I will ask the person who made this video. How does the money created by the Fed get into the hands of people bidding up prices? Schiff's analogy regarding the auction - $100 the first time, and $1000 the second time = rising prices, that makes sense - but he doesn't explain how the people at the auction get the money that bids up prices. How does the Fed's printing get into the hands of bidders?

[Xasew]

@silverkeiser

Even the banks who get the new money first are bidders.

[jaredhaze]

@Xasew Yes, but do banks bid on all the items that would demonstrate inflation? Do they buy energy, gas, food, etc, in such large amounts that they alone can be responsible for increased prices? Higher prices would have to involve the bidding populace, no?

[Xasew]

@jaredhaze

Banks first bid up the price of some securities and their employees' wages for example. Then what's bid up is whatever these employees use their money on, then those new receivers of money can again bid up the price of something else and so on. It's called the Cantillon effect.

Expectations and hedging(excess reserves are off the charts so people are taking precautions) can bid the price of e.g. oil long before the general populace has any money to bid for higher gasoline prices.

[Xasew]

@Xasew

It's true that normally banks loan the new money out quickly and prices rise within a short period of time. Even if they do not loan, the money gets spent more slowly into the rest of the economy through everyday expenses. This is why prices didn't just explode immediately after QE1.

[Stargazer5781]

@silverkeiser Loans

[jaredhaze]

@Stargazer5781 So if the populace isn't taking out loans, then the bidding up of prices does not occur?

[Stargazer5781]

@jaredhaze If no loans are made then the money created on the federal reserve's balance sheet does not go into circulation. If this is the case, assuming the banks do not spend it themselves, it is functionally the same as if the money was never created in the first place.

[bchandr]

I wouldn't pay any attention to AntiSchiff, ShittReport and any manifestations that are anti Peter Schiff. These are just "agents of disinformation". Even as agents, their arguments are at best childish. And never underestimate the predictability of stupidity.

[ParetoOptimality]

btw. for all the peasants reading my previous posting, don't think that i will engage you if you reply. i do NOT talk to uneducated peasants - just as i would avoid driving into harlem or watts when i'm in NY or LA.

[AntixSchiTTxreport]

Again it goes to show Anti-Schiff and a few other dont understand the under lying cause of the MONEY SUPPLY. When there is more money increases the price. Do you not understand leverageing? clear not but I make to do my best to educate u on the topic.

[ParetoOptimality]

@AntixSchiTTxreport

HAHAHAHAHA, this is what happens when you give computers to uneducated peasants.

LMFAO, what does money supply from May 2006 have to do with prices in April 2011? if according to you the supply of money has been so huge, then why did oil drop to US$40/bbl in Jan 2009? fact is, there was massive credit destruction during the financial crisis and M3 has been declining since, despite QE.

dumb insanedebt tool, thicker than adamantite, just like your cult master, peter schiff.

[AntixSchiTTxreport]

@ParetoOptimality

can you provide your source for M3 money supply? help educate people instead of callin people peasents becasue apparently the federal reserve doesnt look at the M3 supply of money any more so Im having a hard time finding the M3 data thanks to at least boost your point because of right now it tells me you dont even know what M3 is in a $ value

[ParetoOptimality]

@AntixSchiTTxreport

watch?v=RHWglRp3ChI

The person you are trying to put down already put it up for your benefit. Unfortunately it appears that you don't know how to read graphs properly, just like Peter Schiff.

Its 'readily available' data that can be found on Shadowstats (yes, the fat hyperinflationist that ignorant peasants like you also like to worship) and M3 is also tracked by other entities such as Capital Economics

So, please don't tell me I don't know what M3 value is - ignorant twat.

[dsglop]

@ParetoOptimality This guy is so chart illiterate that he can't even see that the one he shows for money supply from 59 to 06 makes him look stupid. The M1 was basically flat for a long time while M2 and M3 spiked with the housing bubble. Since the Fed has some control over M1 but little over M2 and 3, he should be able to figure out that banks securitizing debt and throwing it back into the housing market is what caused the bubble. But he can't, because he is an ignorant cult member.

[Internarchy]

@Antischiff (Cont.) against Peter Schiff. You must be one of the many, many pundits or state-funded college graduates, having gotten their witch doctor Keynesian degree, that Peter has made an ass of on live television. There is only a "cultish" following for Peter Schiff, because he is the lone Austrian who has managed to penetrate the major media news outlet blackouts, and get truth to the masses. No one worships Peter Schiff, they worship the truth. Pull your head out of your ass.

[Internarchy]

@Antischiff It's not even Keynesian, for that matter, it's just utter bullshit. The definition is an expansion of the money supply, resulting in more of X units chasing the same amount of commodities, resulting in an appearance of an increase in demand, resulting in higher prices. There is no room for argument. You and yours, i.e., SchittReport, etc., are the worst sort of slanderers. What's worse is, assuming you aren't literally retarded, you cannot believe what you believe. You have an agenda

[Internarchy]

@AntiSchiff "The key is the relative value money each participant holds, which doesn't change when raising it from $100 to $1000, stupid. You are your cult master are total fools. lol You get real inflation effects when there are sticky wages and prices."

I'm sorry, but what in the f*ck is dribbling out of your mouth? Ad Hominem, Keynesian horse shit.

Do you completely disregard all empirical evidence? You cannot possible believe what you so avidly preach. You must be a sponsored saboteur.

[AntiSchiff]

Especially at or near the zero bound, the monetary aggregates don't tell you so much about how loose monetary policy is. You have to look at NGDP metrics, which you probably haven't a clue about.

[runarolsen]

@AntiSchiff - First of all. For anyone to even begin to take you seriously why don´t you come out of the closet and reveal your true identity? Unfortunately I see your rude videos popping up all the time on youtube with ad hominem attacks on Peter Schiff based on utter nonsense. Are you his ex girlfriend that he dumped in a harsh way or something? Or are you one of those he has whooped the ass of on TV exposing the nonsense in your Keynesian yap? Stop being such a chicken and show your self! :D

[AntiSchiff]

And the Fed is not a company, moron. It was established by Congress and the President. The President appoints FOMC members via a process passed by Congress. Any profit it earns goes to the US Treasury.

And why do you show a chart of gold prices, but not the supply? Are you too dumb to realize prices are set by both supply and demand?

themoneyillusion com/wp-content/uploads/2010/12­/Gold2.jpg

And the federal debt is not the largest ever in real terms.

[AntiSchiff]

You're too stupid to realize that in that example there'd be no real effects. There'd only be nominal effects. The key is the relative value money each participant holds, which doesn't change when raising it from $100 to $1000, stupid. You are your cult master are total fools. lol

You get real inflation effects when there are sticky wages and prices.

[clawtheunconquered]

@AntiSchiff leave it to an idiotic Keynesian to focus on the effect of inflation and not the root cause, which is expanding the money supply above productivity. "oh, we can just combat inflation by printing more money during a recession." genius! give this guy a Nobel Prize!

[AntiSchiff]

@clawtheunconquered

Okay stupid, then why is it that the Fed's extraordinary monetary interventions began in January of '08, and the Fed created trillions in new money in '08 and '09, yet here it is '12 and inflation's still low. lol The monetary base has tripled, but have prices tripled? Any indication in the markets they will, stupid? No.

You're an idiot and haven't the first clue about even econ 101.

[clawtheunconquered]

@AntiSchiff inflation is not "low" dumbass... it isn't hyperinflation either, but i don't exactly recall any Austrian besides Schiff actually predict that... but then he isn't an economist, he's an investor. and lmao! try reading hazlitt... the money base does not result in an equal rising of prices. the producers raise their prices according to demand from having more money.

[AntiSchiff]

@clawtheunconquered

lol I wouldn't read a book that's supposedly on econ written by some dumbass Times reporter from the 30s and 40s with no expertise in econ at all. lmao What a fool you are.

Inflation was less than 4% last year, stupid, and core was lower than that. You have no inflation numbers whatsoever stupid.

[clawtheunconquered]

@AntiSchiff well, if you actually read him, you would understand your entire illogical premise that Austrians believe a tripling of the money supply does not result of a tripling of inflation. also, have you ever bothered looking into the life of Keynes? it's a joke to suggest he had any expertise at all in economics... Keynes' daddy is the only reason he was able to achieve his notoriety. Unlike Keynes, Hazlitt actually examined the economy and studied data period...

[clawtheunconquered]

@AntiSchiff and several psychological factors. sometimes prices rise before the money is actually printed. try getting a job so you can observes how the real world actually works, instead of following whatever 17th century Mercantilist bullshit your cult leader Keynes wrote when he was drunk off his ass.

[AntiSchiff]

@clawtheunconquered

There wasn't one coherent statement there anywhere, idiot. You must be mentally ill on top of being mentally incompetent.

[AntiSchiff]

@clawtheunconquered

By the way, idiot, check out the performance of your cult leader's mutual funds. Download the pdfs.

europac net/services/mutual_funds

They've all lost money, even before management fees, except for one that's only slightly positive, but is also a big loser after management fees. And his fees, at 8%, are the highest I've ever seen.

[clawtheunconquered]

@AntiSchiff yep i'm the idiot, says the man who is only capable of using ad hoc attacks. did i ever say peter schiff was the best voice out there? no... but you also must know that, otherwise you'd grow a pair of balls and go after a real Austrian heavyweight...

[clawtheunconquered]

@AntiSchiff what we seriously have is stagflation.

[AntiSchiff]

@clawtheunconquered

No, inflation was only about 3.8% last year, according to pricestats. We need it to be in the 5-6% range, at least, to get back to trend.

The economy finished the year far stronger than I heard any Austrian predict. All I hear is hyperinflationary depression stuff from them.

[AntixSchiTTxreport]

@AntiSchiff ha 

[AntiSchiff]

@AntixSchiTTxreport

Where's all the inflation Austrians have been predicting? We're working on our fifth year now since the Fed began extraordinary measures. lmao

[AntixSchiTTxreport]

@AntiSchiff I got a tip for you, go look at how inflation is calculated to versus how it was calculated before 1982, when interest rates were above 10% :)

[AntiSchiff]

@AntixSchiTTxreport

I don't have to. I can look at this: bpp.mit edu/usa/

I can also look at commodity indexes since 2008, like this:

online.wsj com/mdc/public/npage/2_3051.ht­ml?mod=mdc_cmd_dtabnk&symb=DJU­BS

Also, of course, I haven't seen much inflation in my purchases, on average. There's been volatility, but I'm not paying much more for the same food items now I was in 2008. In fact, I'm often paying less.

[AntixSchiTTxreport]

@AntiSchiff oh boy

[AntiSchiff]

@AntixSchiTTxreport

If dollar inflation's so high, why are the prices of most commodities still well-below where they were in 2008, in dollar terms?

Why would MIT and State Street's real time tracking of internet prices have an inflation rate of not greater than 4% for last year, and far lower in prior years after the crisis?

You people just don't make any sense.

[clawtheunconquered]

@AntiSchiff "The economy finished the year far stronger than I heard any Austrian predict." man, you Keynesians are delusional. our economy is still stagnant, just like the 70s. but a slight turn around that has nothing to do with Obama is celebrated as reason to expand upon the very tools used to get us to this point.

[AntiSchiff]

@clawtheunconquered

Look stupid, Austrians have predicted dollar collapse since 1971, when Nixon ended the gold standard. They've predicted hyperinflationary depression.

You are wrong and dumb.

[clawtheunconquered]

@AntiSchiff sure... continue proving you don't understand a single thing about what Austrians believe, dumb dumb.

[AntiSchiff]

@clawtheunconquered

What do Austrians say about downward wage rigidity? What do they say about secondary deflation? What do they say about cardinal utility? What do they say about indifference curves? I bet you can't answer any of those questions, because you don't know the first thing about Austrian economics either.

[AntixSchiTTxreport]

@AntiSchiff look u can make urself feel smart talkin about terms that really dont have much factor into the boom and bust cycle, but what u do is understand the level of debt and the consumption of america fair exceeds its ablity to pay it, go look what happened to argentina prime example of what is taking shape in america today

[AntiSchiff]

@AntixSchiTTxreport

First, if you're going to make a claim like "the level of debt and the consumption of america fair exceeds its ablity to pay it", show me the evidence. Are interest rates on American debt high? No, they're at all time lows. We can borrow for 30 years at 3%. Is inflation high? Not particularly. Most commodity prices in dollars are still below their mid-'08 levels.

[AntixSchiTTxreport]

@AntiSchiff do u even know what the federal reserve is doin and how ur banking sectors works? who do u think is buyin the america bonds come on man, its not rocket science

[AntiSchiff]

@AntixSchiTTxreport

So, since you think you can judge US credit worthiness, precisely how much debt can the US afford, given your GDP forecasts going forward?

The average American family has a mortgage at 3x+ income, car loans, student loans, credit cards, etc., and the vast majority have remained more than solvent for many decades. The US government's gross debt is only about 100% of income(GDP), and the government can raise taxes and create new money. Families can't.

[AntiSchiff]

@AntixSchiTTxreport

And you mention Argentina? That shows you don't know the first thing about, well anything. Argentina had a currency board and was pegged to the dollar. As the dollar rose under Clinton, it squeezed their exports and raised the real value of their debt, while creating crushing deflation and economic contraction. They've been fine ever since the bank run after they devalued their currency.

You've never even read about Argentina, have you? lmao

[AntixSchiTTxreport]

@AntiSchiff see I cant even talk to u anymore why? becuz ur so narrow minded and to stubborn most likely becuz ur brain capacity is unable to handle more information but u believe to much in what the government tells u, I feel sorry for you, I hope u can figure this out one day

[AntiSchiff]

@AntixSchiTTxreport

The government, idiot? I haven't cited one government number, dumbass.

"Open-minded" to you means considering stupid, ignorant, conspiracy theories that only people who don't know the first thing about money would believe. I know you don't make money in the markets.

Of course, you don't address why most commodity prices are still below pre-crisis levels, despite all the QE. It's because you have no answer. It doesn't fit your claims.

What a joke

[clawtheunconquered]

@AntiSchiff he's probably talking about how the CPI conveniently changed it's method with the 90s boom. if we went by the old method, America's worse now, unemployment and inflation wise, than the late 70s. so how was he wrong?

[AntixSchiTTxreport]

@AntiSchiff ur not getting the point the way they calculate inflation today is not the same way they calculated inflation in the 1980s in the 1980s inflation was based on a basket of goods having quantities and qualities fixed were as today its based on quality of goods and substitution. hence no indication for the federal reserve not knowing what was happening in the economy leading up to 2008

[clawtheunconquered]

@AntiSchiff first thing about money? inflation is when the money supply increases faster than the resource... that's how the housing bubble "inflated." it doesn't have anything to do with the conveniently revised CPI.

[AntixSchiTTxreport]

@AntiSchiff I got thinkin about this for some reason and decided to respond what ever book u read about argentina clearly doesnt show the impacts their crisis had, on unemployment inflation and the overall state of the argentina economy. Deflation really ? do u even understand deflation, versus dollar value deflation, this would be catasprohic for america who imports over 70% of all goods thats mean these things will cost more and indiviudals wont be able to afford them

[clawtheunconquered]

@AntiSchiff lol. did you rip all those terms from the same article on government job creation?

[cronoslogic]

It started in 1913 with the passing of the Federal Reserve Act and was exacerbated by the removal of the Gold standard in 1971. Everything after that is the slow painful death of the American dollar.  Inflation is the invisible tax and this scam has been the largest theft of resources in human history. The worst of tyrants would be ashamed of such a scam. We're at the end of the scam, so they can no longer hide the economic fornication. End the god damn Fed!