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RE: [LandCafe] Re: Four Horsemen

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  • harrypollard
    Something controlled economy advocates haven t appreciated is that there are unintended consequences to their actions. Their policies to drop the interest rate
    Message 1 of 90 , Feb 1, 2013
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      Something controlled economy advocates haven't appreciated is that there are
      unintended consequences to their actions.

      Their policies to drop the interest rate (to zero) to make capital less
      expensive also reduces interest in tying up one's capital for next to
      nothing.

      I have a small CD that is ancient. I just leave it in the bank. The other
      day I noted that my interest rate is now 0.45%. Heck, I might as well get it
      out and buy a new and larger TV set and get an immediate return in pleasure
      (I think).

      So. on a much larger scale, this may be the thinking of larger firms. Of
      course, there is always land-value speculation to invest in.

      Harry

      ***********************
      The Alumni Group
      Henry George School
      Of Los Angeles
      Tujunga CA 91042
      (818) 352-4141
      ***********************






      -----Original Message-----
      From: LandCafe@yahoogroups.com [mailto:LandCafe@yahoogroups.com] On Behalf
      Of Jock Coats
      Sent: Sunday, January 27, 2013 3:26 PM
      To: LandCafe@yahoogroups.com
      Subject: Re: [LandCafe] Re: Four Horsemen

      Do you think that is uninvested corporate cash balances? We have a similar
      issue here on that score.

      Some say it's evidence of "Animal Spirits" :)

      On 27 Jan 2013, at 23:16, "harrypollard" <harrypollard@...> wrote:

      > [Attachment(s) from harrypollard included below]
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      > Roy,
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      > Demand deposits have continued to zoom.
      >
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      > Attached is a graph showing the enormous increase in demand deposits.
      Apparently an enormous increase in the money supply without hyperinflation.
      >
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      >
      > Harry
      >
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      >
      > ***********************
      >
      > The Alumni Group
      >
      > Henry George School
      >
      > Of Los Angeles
      >
      > Tujunga CA 91042
      >
      > (818) 352-4141
      >
      > ***********************
      >
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      > < span style="font-size:11.0pt;font-family:"Bookman Old
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      > From: LandCafe@yahoogroups.com [mailto:LandCafe@yahoogroups.com] On
      > Behalf Of roy_langston
      > Sent: Friday, January 25, 2013 4:48 PM
      > To: LandCafe@yahoogroups.com
      > Subject: [LandCafe] Re: Four Horsemen
      >
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      >
      > --- In LandCafe@yahoogroups.com, &q uot;harrypollard" wrote:
      >
      > > Demand deposits are not the only kind of money but they are the largest
      component by far.
      >
      > How so?
      >
      > > Wiki mentions that in 2010 of the broad money supply (M2) only
      > > $915.7 billion of the $8,853.4 billion was physical coins and paper
      money.
      >
      > We know currency is a small fraction of the money supply (and half of it
      is held overseas, where it circulates unregulated and has no effect on
      domestic inflation). But how much of M2 is demand deposits? Your previous
      message said demand deposits had increased from $310G to $460G in 2008. So
      currency ($916G) is nearly double demand deposits ($460G). And now you seem
      to have twigged that M2 is $8853G, a sum nearly _20_ times demand deposits.
      >
      > Your "argument" has fallen apart under the attack of your own "supporting"
      evidence.
      >
      > > Nothing you say addresses the lack of inflation effect from the almost
      50% increase in demand deposits in a few months.
      >
      > That claim is false. I addressed it directly, and provided a source
      showing that lending declined by far more over a somewhat longer period.
      >
      > > If there were countervailing
      > > financial actions, it doesn't show in measurement of total demand
      deposits which rise precipitously over long periods.
      >
      > Because demand deposits are not the only kind of money. Look at the
      grahphs I provided links to.
      >
      > -- Roy Langston
      >
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      >

      --
      Jock Coats
      Warden's Flat 1e, J Block Morrell Hall, OXFORD, OX3 0FF
      m: 07769 695767 skype:jock.coats?call
      jock.coats@... http://jockcoats.me









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    • roy_langston
      ... Inflation is shorter and more descriptive. ... Having a label and definition for the concept helps people share information about it. ... Maybe that s
      Message 90 of 90 , Feb 1, 2013
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        --- In LandCafe@yahoogroups.com, "harrypollard" wrote:

        > So why not say they are changing systematically?

        "Inflation" is shorter and more descriptive.

        > How does calling rising prices inflation help to "understand how, when and why"?

        Having a label and definition for the concept helps people share information about it.

        > Whereas inflation in its original meaning indicates that the money issuer has done something.

        Maybe that's part of it: the apologists for bankster privilege want to conceal the fact that it is private commercial banks that are issuing the money, not government.

        -- Roy Langston
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