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I honestly could not believe my eyes when I read his post. I started to challenge him, and the converstation grew even more ridiculous. I have no idea how to respond anymore. I know what I want to say, I just can't say it right. Here is the conversation, with me and a poster who I will called "Keynes...
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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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My son will be turning 8 years old soon and he is exceptionally bright for his age...and he is really showing a strong interest in economics and politics. He already understands the value of collecting gold & silver over paper money, and totally understands inflation as well! During the presidential...
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The part that you’re missing is the technical aspect of how the Federal Reserve creates money. This is understandable because critics often use the metaphor that the Fed is “printing’ money or “creating money out of thin air.” What actually happens is that the domestic trading desk at the New York Federal...
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Currency, by definition, is never "hard;" people keep the hard money and spend the least hard. However, the problem is easy if there is a federal system: the central government is mandated to coin both gold and silver coins, the several States adopt one or the other. If someone finds a reef...
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An expectation of long term inflation would seem to be factored into (loan) interest rates. Rothbard makes this point in "Making Economic Sense", ch. 8: http://www.mises.org/econsense/ch8.asp, in particular: As prices rise, and as people begin to anticipate further price increases, an inflation...