tag:blogger.com,1999:blog-17232051.post6142459675886681845..comments2024-03-28T03:16:14.104-04:00Comments on Noahpinion: Religion and Monetary Policy: Is There a Difference?Noah Smithhttp://www.blogger.com/profile/09093917601641588575noreply@blogger.comBlogger53125tag:blogger.com,1999:blog-17232051.post-58231628272142448912017-05-24T11:27:10.159-04:002017-05-24T11:27:10.159-04:00Monetary system, at it's basics is a magic of ...Monetary system, at it's basics is a magic of turning stones to bread. Any Christian should know that was one of devil's temptation (along with kneeling before him and getting the world). <br /><br />It's no problem seeing it as a religion since you need faith in the power of gold bars and diamonds - without faith of all people it would be useless.<br /><br />It is convenient to have your hard work, experience and time spent for making society better right in your pocket to trade it with others, but the idea that someone's mental and physical work is literally millions of times more worth than the others is an unfair system where we are not equal and there's constant competition, leading to wars and such. <br /><br />The idea that you could make some numbers on screen make one man kill the other is also absurd and against nature.<br /><br />The problem of transforming society lies in the fact that people think they need stuff to be happy, and this image and idea is what's stopping us from transition.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-17232051.post-83686251874653435092013-09-05T16:30:40.707-04:002013-09-05T16:30:40.707-04:00as a monetary system can get out of control if the...as a monetary system can get out of control if there is too much moneywilliam hamelhttp://noahpinionblog.blogspot.com/2013/08/religion-and-monetary-policy-is-there.htmlnoreply@blogger.comtag:blogger.com,1999:blog-17232051.post-84634967101009327212013-08-29T04:32:03.228-04:002013-08-29T04:32:03.228-04:00The *get rid of big gov* suggestion & *drownin...The *get rid of big gov* suggestion & *drowning/dying of thirst* analogy if combined & applied with some logic & balance would go a good way towards resolving economy issues. QE in carefully disciplined doses may be a necessary evil when those whose responsibility it is to keep it real havent kept it real & regulators haven't regulated effectively. But it is and will always be a departure from common sense economy management. Some risk may be necessary from time to time but logic dictates that constant & ever expanding risk is a recipe for disaster. Try managing a family budget like that. Your children would starvekate bopphttp://www.katebopp.comnoreply@blogger.comtag:blogger.com,1999:blog-17232051.post-52877332161472125612013-08-29T00:11:07.012-04:002013-08-29T00:11:07.012-04:00QE is in part a swap for interest bearing national...QE is in part a swap for interest bearing national securities issued by the treasury in exchange for Fed Reserves which now pay interest. The distinction between reserves and treasury securities, although quite important, are not as drastic as they once were. Treasury securities are money-like or can be used to acquire more money-like financial securities especially for non-bank intermediaries. <br /><br />Referring to QE as 'money printing' is too vague. From the private sector's perspective, QE creates reserves which can only be held by banks while "uncreating" treasuries. Again, your view of the monetary and financial system are too simplistic. <br /><br />Also that Mises quote "boom brought about by credit expansion" CREDIT expansion is key. In "The Theory of Money and Credit" Mises differentiates between state liabilities, 'money' and bank liabilities (faduciary media) 'credit.' <br /><br />Credit expansion will lead to a collapse to Mises. You keep referring to a nation "money printing" leading to some dire situation that looms. This is quite different than what your quote is referring to. <br /><br />Again what do you think is looming? What should policy makers think to avoid? Can you be specific? Rafael Barbierihttps://www.blogger.com/profile/01578692617118123417noreply@blogger.comtag:blogger.com,1999:blog-17232051.post-78766251854222729652013-08-28T04:40:51.773-04:002013-08-28T04:40:51.773-04:00No surprise. The basis of credit and money goes ba...No surprise. The basis of credit and money goes back to the Templer's return from the holy land and the deadly secret they had which would have destroyed the Catholic Church(and Christiandom in general). Queen Elizabeth gives them special status inside the Angelican Church and the "Illumanti" is born..............which is where the confusion sets in. <br /><br />The Catholic Church is powerful. Much more than people think. About every "conspiracy" theory in the modern world about "Illumanti's", "economic systems" stems from the Church's propaganda. The 2 outward fingers pointing up, the middle ones curled under and the thumb pointing out.........Bill Clinton shows it, so does Ron Paul, Pope Benedict did it a ton.........it is the sign of the Church and the hand signature Paul used in his evangelical crusades about the "Christ". This fact would blow people away. <br /><br />The Hegelian dialect is the Church's dualism. The Knights of Malta have Pat Buchanan and Ted Kennedy as/were members. Think about it. <br /><br />Most "Calvinists" on the web would be blown away if they knew the truth. Their pathetic attempts at piecing together the real conspiracy would be blown away as were their world. Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-17232051.post-28728125389075173072013-08-28T04:29:27.622-04:002013-08-28T04:29:27.622-04:00Actually, it would have a aristocracy, because who...Actually, it would have a aristocracy, because whoever has the power over enforcement would run the roost to they were defeated. It is the Rothbardian degeneration of the old ancient order. Whether it be Egypt, Rome or China. <br /><br />Lets note that "private property" is a government service. Without the governments backing property laws begin to fall apart. I could be like Alexander and confiscate properties, abolish state governments and build a mighty empire out of "old" America and Canada. My guess "Libertarians" would be quite scared by that point. <br /><br /><br /><br />Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-17232051.post-13765155193387011602013-08-27T19:40:44.464-04:002013-08-27T19:40:44.464-04:00Christian and Islamic prohibitions of lending mone...Christian and Islamic prohibitions of lending money at interest weren't necessarily driven by the social cost of usury. <br /><br />Creation <i>ex nihilo</i> is a prerogative of the Deity, and when I give you x amount of money, and you give me x plus a bit more back, someone along the way has made more money out of nowhere, and that's not something mortals get to do. Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-17232051.post-3922057798183031952013-08-27T14:22:35.988-04:002013-08-27T14:22:35.988-04:00Life is a free lunch forever. Most economists do ...Life is a free lunch forever. Most economists do not understand this simple fact; however, Darwinians understand this well.KVnoreply@blogger.comtag:blogger.com,1999:blog-17232051.post-87767083477050311082013-08-27T11:07:09.170-04:002013-08-27T11:07:09.170-04:00You're exactly right, Anon. In addition a Lib...You're exactly right, Anon. In addition a Libertarian world would not have legal structures like LLPs, LLCs, Corporations....all of which are designed to limit liability losses to investors, owners, and shareholders. The real problem with a Libertarian society wouldn't cruelty or aristocracy, it would be liability and enforcement.Cameron Hoppehttps://www.blogger.com/profile/17817707262059114619noreply@blogger.comtag:blogger.com,1999:blog-17232051.post-33287698223243022512013-08-27T10:24:48.017-04:002013-08-27T10:24:48.017-04:00"But since there would be no way to go bankru..."But since there would be no way to go bankrupt and anyone could be financially liable for any damage to another person or his or her property, the court system would be larger by at least one order of magnitude. Probably more."<br /><br />Good heavens, if that is what the "smart" ones believe, I'd hate to see what the less smart ones are saying. Do none of them see the contradiction between "no way to go bankrupt" and "financially liable for any damage"? What if I cause damage that is more than the value of my financial assets? Note that just about anyone who is less than enormously wealthy and operates a motor vehicle is at risk of exactly that. I suppose we could change the name from "bankrupt" to "courtrupt" but the end result would appear to be the same.<br /><br />Oh, and who pays for this 10X or 100X court system? Who enforces its judgements and who pays for the enforcers? What penalties accrue to those who don't (or can't) comply with its decrees?<br /><br />I understand that the enforcement of property rights is a key component of the libertarian utopia. Excellent. May I sue my neighbor if he trespasses onto my property? Do I have to show specific damages or is his mere presence against my wishes sufficient to receive a judgment? What if he trespasses by throwing his daily trash over my property line? What if he trespasses by generating toxic fumes on his property and allows them to cross my property line? What if he trespasses by operating a motor vehicle and allows his emissions to cross my property line? Can I sue the operators of every car that passes by my house? (Perhaps we'd better up the estimate of the increase of the court system to 1,000X or 10,000X.)Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-17232051.post-25452707993295349952013-08-27T08:09:19.660-04:002013-08-27T08:09:19.660-04:00Rafael, the quote by Mises which is important in t...Rafael, the quote by Mises which is important in today's environment is this one:<br /><br />"There is no means of avoiding the final collapse of a boom brought about by credit expansion. The alternative is only whether the crisis should come sooner as the result of a voluntary abandonment of further credit expansion, or later as a final and total catastrophe of the currency system involved."<br />http://mises.org/humanaction/chap20sec8.aspNeilhttps://www.blogger.com/profile/01380636832924052375noreply@blogger.comtag:blogger.com,1999:blog-17232051.post-23442245257761549042013-08-27T08:05:11.941-04:002013-08-27T08:05:11.941-04:00Some comments on what was said above. Yes, QE is ...Some comments on what was said above. Yes, QE is money printing, currency creation, making money out of thin air, etc., and using that money to purchase assets. This is common knowledge to anyone who has even remotely been paying attention. <br /><br />The Fed is purchasing an enormous amount of treasuries. It's not just a token amount as you are implying. Current QE purchases are roughly equal to the Federal deficit. The Fed currently owns 30.5% of the U.S. Treasury market. It is on track to own all of it by 2018.Neilhttps://www.blogger.com/profile/01380636832924052375noreply@blogger.comtag:blogger.com,1999:blog-17232051.post-42330806769123235532013-08-26T23:29:36.961-04:002013-08-26T23:29:36.961-04:00Nice analogy. Lets carry that analogy a wee bit fu...Nice analogy. Lets carry that analogy a wee bit further, lets also mandate that only the government or a specific quasi-government (government plus some ultra rich private companies that just happen to be in the business of making / exchanging flash drives/ putting data on flash drives) can manufacture and distribute the said flash drives, and any data storage of more than 10000 bytes need to be reported to the government and can only be carried out by these entities and their subsidiaries.<br /><br />Oh, did I mention that making unauthorized flashdrives, say called bitDrive, can land you in jail?<br /><br />Lets not even start describing the last look the government has on all data you put in the flash drives, because people might confuse that for reality.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-17232051.post-86453755146807581272013-08-26T22:35:38.141-04:002013-08-26T22:35:38.141-04:00For me, the key is inflation. If QE is providing ...For me, the key is inflation. If QE is providing extra base money to cover the extra demand for money as a safe asset, that would otherwise disrupt the medium of exchange function of money, then QE is a free lunch. Depending on how you define inflation, you can make the case that QE has been a free lunch in the US for at least before US asset prices started hitting new highs. It is harder to make that case in the UK, where even consumer price inflation has been generally well above its target all along.RebelEconomisthttps://www.blogger.com/profile/13241098878248190971noreply@blogger.comtag:blogger.com,1999:blog-17232051.post-72949140759330461162013-08-26T22:15:54.288-04:002013-08-26T22:15:54.288-04:00I don't see how Quantitative Easing, if it hel...I don't see how Quantitative Easing, if it helped the economy, could ever be interpreted as a free lunch. Same thing for Keynesian stimulus, or stimulus of any kind. An economy that produces more has obviously done more work. That is nothing but a tautology. If Quantitative Easing doesn't seem hard, well, maybe that's because the decision seem simple. Yet the ultimate (supposed) result of QE is really just a whole hell of a lot more people getting up and going to work every morning, doing things like building houses or roads or cooking food, etc. If QE works, it works because it leads to more people doing more work. Where in the hell is the free lunch? Its so obvious as to be baffling as to why someone would not understand it.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-17232051.post-31146424447747444442013-08-26T21:12:19.160-04:002013-08-26T21:12:19.160-04:00Keynesian theory can't be like hedonism. The v...Keynesian theory can't be like hedonism. The very idea of it makes too many people wince. I think of it more as having to floss.Kaleberghttps://www.blogger.com/profile/05283840743310507878noreply@blogger.comtag:blogger.com,1999:blog-17232051.post-46681208810142377582013-08-26T21:02:54.000-04:002013-08-26T21:02:54.000-04:00"I'm describing the impact of Federal Res..."I'm describing the impact of Federal Reserve policy on the average American."<br /><br />Really? You're someone with internet access, posting to an econoblog, about Fed policy. It's possible you know average Americans, but the evidence suggests it ain't likely.<br /><br />"I understand the technical definition of inflation perfectly. Who cares what the textbooks say?"<br /><br />Wah, wah, wah. Sounds like someone had their textbook manuscript rejected by a publisher.<br /><br />"How about you step outside your glass tower..."<br /><br />Splendid advice. You first.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-17232051.post-17988480387656444252013-08-26T20:57:26.892-04:002013-08-26T20:57:26.892-04:00Well... Other than markets don't like it very ...Well... Other than markets don't like it very much.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-17232051.post-74777687458825403602013-08-26T20:53:48.998-04:002013-08-26T20:53:48.998-04:00This would be more persuasive if every single symp...This would be more persuasive if every single symptom you list of big government hadn't also existed for millennia in small governments. It's almost as if that isn't the variable, or something.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-17232051.post-16860689444588548732013-08-26T20:51:24.570-04:002013-08-26T20:51:24.570-04:00"I just know that this one in the U.S. has go..."I just know that this one in the U.S. has gotten to the point where it cannot function without continuous QE."<br /><br />Really? Last I checked, QE can be traced to about $85 billion a month in T-bill purchases. That sounds like a lot, until one learns the market in Treasurys is $4,000 billion a month. Which is to say, $3,915 billion of T-bill transactions have absolutely nothing to do with QE. Strangely enough, 98% of monthly transactions manage to function without QE.<br /><br />QE is a marketing gimmick. It has zero impact on the overall system. It's the Fed doing something to be able to say they're doing something. Only people who believe the Fed shouldn't be doing anything at all seem to believe it has any real-world impact.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-17232051.post-41679171412323316412013-08-26T16:57:40.933-04:002013-08-26T16:57:40.933-04:00Actually, inflation does have a precise definition...Actually, inflation does have a precise definition: "An increase in the price level". A Price Level is a price measure of all goods and services, normalized. A Price Level is approximated with a price Index, such as the CPI or PCE.<br /><br />My response is still valid. The Fed's policy does not increase the price of food, etc, but even if it did it would not be inflation. <br /><br />I actually have volunteered in a soup kitchen numerous times, among other similar activities. I do not see how your outburst relates to any discussion here. Jefftopiahttps://www.blogger.com/profile/05005211633248766565noreply@blogger.comtag:blogger.com,1999:blog-17232051.post-91292398560775533722013-08-26T16:22:25.501-04:002013-08-26T16:22:25.501-04:00There are ongoing disputes about the "technic...There are ongoing disputes about the "technical definition of inflation." It is logically impossible to understand it "perfectly."<br /><br />And how do you know who gets a taste of the real world and who doesn't?<br /><br />Rhetoric Tip o' the Day: Anger not compelling.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-17232051.post-81126207659096029652013-08-26T16:18:21.712-04:002013-08-26T16:18:21.712-04:00Yes, now that's some hard science. Debt-based...Yes, now that's some hard science. Debt-based money and seed corn, that analogy is going to take you far. Run with it. Run. Run.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-17232051.post-17494891218455194442013-08-26T16:10:54.811-04:002013-08-26T16:10:54.811-04:00I said nothing of inflation or the Federal Reserve...I said nothing of inflation or the Federal Reserve. I'm describing the impact of Federal Reserve policy on the average American. I understand the technical definition of inflation perfectly. Who cares what the textbooks say? How about you step outside your glass tower (or university office) and pay some visits to the elderly, or perhaps spend some time volunteering at a food bank to get a taste of the real world for a change?michaelangelohttps://www.blogger.com/profile/16159711834881296933noreply@blogger.comtag:blogger.com,1999:blog-17232051.post-6579437098061375722013-08-26T15:53:24.069-04:002013-08-26T15:53:24.069-04:001) The Federal Reserve does not set tax rates.
2) ...1) The Federal Reserve does not set tax rates.<br />2) The Federal Reserve does not set gas prices.<br />3) The Federal Reserve does not set food prices.<br />4) The Federal Reserve does not set rent.<br /><br />Note that you are also mistaking changes to gas, food, and rent prices for inflation. That is incorrect. Please see Noah's articles on Inflation. Real facts: gas is down from prior to the crisis; rent might be higher, but that could be due to a shift in demand, away from home ownership to renting apartments; and so on. <br /><br />Before you jump in and post all this screed, how about you do your homework first. <br /><br />Jefftopiahttps://www.blogger.com/profile/05005211633248766565noreply@blogger.com