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I know this must have been asked before, but it is a topic I still cannot wrap my mind around. From start to finish, how does this happen? Who gets the money? I know it has something to do with the Fed buying securities of some sort, and the money used to purchase them is created out of thin air. But...
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Hi Everyone, I'm drafting a letter to my friends and family about the coming inflation, but I want to be sure I have my figures correct. Feel free to check my math and critique away. Likely M3 pre-QE1 and QE2 The last known M3 was reported as 10298.7 billion by frederalreserve.gov in Feb 2006. I...
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[quote user="fsk"] That graph is misleading, because the CPI is biased . True inflation is much greater than the CPI. If you use M2 as your index of inflation, then inflation is 8%-9%. If you use reconstructed M3 as your index of inflation, than inflation is 10%-20%. If you use gold as your...
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Over the last week, I have been somewhat pleased at the grilling of Bernanke by certain members of Congress. I know Ron Paul has questioned Bernanke over and over about the definition of Inflation and the role the Fed plays, but has anyone brought this to Bernanke's attention http://www.lewrockwell...
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I just want to check if my understanding of the reserve requirement is accurate. When the Fed buys an asset from banks or government debt it creates however much money in the form of reserves. So the money supply should be potentially inflated by 10 times the Fed's purchase because of fractional...
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I have been under the impression that the government's inflationary policies would cause a devaluation of the dollar. This does not appear to be happening. Is it possible that it will not happen because other countries will continue to view the US economy as relatively stable, and so will continue...
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Here's a story I just wrote to help explain what the Fed's doing to wreck our economy. Please let me know if it helps. Normal 0 false false false MicrosoftInternetExplorer4 The Three Little Pigs and the Federal Reserve Crisis In their later years, they bought a yacht and sailed the seven seas...
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I have listened to many financial "experts" and economists on television (mainly on CNBC) espouse their opinions on how to "fix" the economy, and one central theme always underlines the discussions: that recession must be avoided at all costs. I do not understand this. Rather, the...
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See Rothbard's What Has Government Done to Our Money . When a regular person buys a government bond, that person is spending money they had to have somehow received beforehand from someone else. That is, it must have been money that was already in circulation. When the Federal Reserve buys government...
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In the midst of our economic slowdown, the U.S. Treasury Dept has issued what they are calling the "Blueprint for Financial Regulatory Reform". The highlights, as given by an article on Yahoo!'s website , are as follows: --designate the Fed as the primary regulator for market stability...