A good watch

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Davos's picture
Davos
Status: Diamond Member (Offline)
Joined: Sep 17 2008
Posts: 3620
A good watch

A good watch

JAG's picture
JAG
Status: Diamond Member (Offline)
Joined: Oct 26 2008
Posts: 2492
Re: A good watch

Hi Davos,

I caught that speech a few days back, and I have to say for an economist, Steve Keen is one smart cookie. I didn't bother to post it to the site because his viewpoints are very contradictory to CM's and this community's consensus.

IMO, the most important point in the whole speech is this:

Most people assume that an expansion of bank reserves precedes an expansion of the money supply (via Fractional Reserve Lending), but analysis shows that the exact opposite is true. The fact that the Fed is bolstering bank reserves does not mean inflation is in our future, it means that debt-inflation has already peaked and is in the past. At least thats my take on it. Mish covers this as well.

 

Davos's picture
Davos
Status: Diamond Member (Offline)
Joined: Sep 17 2008
Posts: 3620
Re: A good watch
JAG wrote:

Hi Davos,

I caught that speech a few days back, and I have to say for an economist, Steve Keen is one smart cookie. I didn't bother to post it to the site because his viewpoints are very contradictory to CM's and this community's consensus.

IMO, the most important point in the whole speech is this:

Most people assume that an expansion of bank reserves precedes an expansion of the money supply (via Fractional Reserve Lending), but analysis shows that the exact opposite is true. The fact that the Fed is bolstering bank reserves does not mean inflation is in our future, it means that debt-inflation has already peaked and is in the past. At least thats my take on it. Mish covers this as well.

 

Well my apologies to not taking into consideration. I really wasn't thinking about that when I posted, just that this guy got how wrong Bernake et al are and how disastrous this GDII on steroids will be. Take care

JAG's picture
JAG
Status: Diamond Member (Offline)
Joined: Oct 26 2008
Posts: 2492
Re: A good watch

"GDII on steroids!!! "  That would be funny if it wasn't so damn accurate.

PS: Don't misunderstand me, I'm thankful that you posted his speech.....I think its always a good idea to be open to various interpretations of the past, present, and future, something you always did when you compiled the daily digest.

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