$this->bbcode_second_pass_quote('pedalling_faster', 't')hanks for the explanation.
care to take a shot at explaining derivatives & hedge funds ? ( in detail, with a diagram ... Please ? )
PeakOil is You
Money Creation Diagrammed
Re: Money Creation Diagrammed
by mmasters » Sun 25 May 2008, 12:18:40
They don't diagram well.
Mr Bill has some great posts around on how all the various derivatives work though...
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mmasters - Intermediate Crude
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Re: Money Creation Diagrammed
by pedalling_faster » Sun 25 May 2008, 17:10:51
$this->bbcode_second_pass_quote('Bas', 'V')ery nicely explained MMasters; Elijah, indeed the Fed (or any other Central Bank) would be forced to print money like hell in case of a massive bank run.
would "best management practices" in this case be to be prepared ahead of time ?
hopefully they're better managed than Michael Brown's FEMA.
if a bank run is anticipated, it's logical to have a stack of Benji's ($100 bills) printed & ready ahead of time.
there do seem to be some people at least thinking at the Fed.
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Re: Money Creation Diagrammed
by Ivan_M » Sun 25 May 2008, 20:46:17
$this->bbcode_second_pass_quote('MonteQuest', '
')Just like the Great Depression, maybe permanent this time.
')Just like the Great Depression, maybe permanent this time.
to end the Great Depression the government spent itself massively into debt fighting the largest war in history and arming its allies. then after the war it spent even more rebuilding those allies. Today, the government is already in massive debt and no big bads need thwacking.
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Re: Money Creation Diagrammed
by mmasters » Sun 25 May 2008, 20:53:48
$this->bbcode_second_pass_quote('Ivan_M', '')$this->bbcode_second_pass_quote('MonteQuest', '
')Just like the Great Depression, maybe permanent this time.
')Just like the Great Depression, maybe permanent this time.
to end the Great Depression the government spent itself massively into debt fighting the largest war in history and arming its allies. then after the war it spent even more rebuilding those allies. Today, the government is already in massive debt and no big bads need thwacking.
Cheap oil to a large degree brought us out of the Great Depression too, though it's never mentioned.
As things get much worse we will see a great war with Iran. All the credit created in tandem with debt to fund the war will improve the economy as wars tend to do.
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