Author Topic: Economics Culture  (Read 9579 times)

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Offline waldo

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Re: Economics Culture
« Reply #210 on: April 30, 2021, 12:17:57 pm »
Canada is following the same policy. For Federal Reserve read Bank of Canada.

quantitative easing (QE) policy... all G7 countries are following it - it being, 'central banks purchasing their respective government bonds'; however, indication is that, the Bank of Canada is set to slow its bond buying ahead of its G7 peers

Quote
The Bank of Canada is signalling it will the first Group of Seven central bank to clearly start taking its foot off the gas as the nation’s economic recovery from the COVID-19 crisis accelerates.

Deputy Governor Toni Gravelle used a Tuesday speech to lay out ground rules the central bank will use to slow the pace of its purchases of Canadian government bonds.
 
The comments suggest a greater willingness than the U.S. Federal Reserve and other major central banks to scale back support for the economy. Analysts anticipate next steps to pare bond purchases will come as early as a policy decision next month, versus expectations for a so-called taper in the U.S. next year. The Bank of Japan last week tweaked its stimulus programs, but argued it’s not hitting reverse.
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Gravelle’s virtual remarks before the CFA Society Toronto highlighted how the reduction in purchases will work.

He said the tapering will be “gradual and in measured steps” and pointed out that moderating the pace of bond acquisitions will still mean stimulus is being added, as long as purchases exceed maturities. Policy makers will eventually bring net purchases to zero when the “recovery is well underway.” But even then, that will still leave a considerable amount of stimulus in place because of the stock of accumulated bonds.

“We will eventually get down to a pace of QE purchases that maintains -- but no longer increases -- the amount of stimulus being provided,” Gravelle said.
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Offline wilber

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Re: Economics Culture
« Reply #211 on: April 30, 2021, 01:42:50 pm »
The only way it can slow bond buying is for the government to borrow less money.
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Offline Michael Hardner

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Re: Economics Culture
« Reply #212 on: April 30, 2021, 02:24:47 pm »
The only way it can slow bond buying is for the government to borrow less money.

Isn't that self evident ?

Offline wilber

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Re: Economics Culture
« Reply #213 on: April 30, 2021, 04:06:01 pm »
Isn't that self evident ?

Only if they borrow less money.
"Never trust a man without a single redeeming vice" WSC
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Offline kimmy

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Offline kimmy

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Re: Economics Culture
« Reply #215 on: May 29, 2021, 01:52:46 pm »
We've all heard of the "Trickle Down" theory and we all know it's BS.

I've been pondering a modern corollary that I've called the "Hoover Up" theory.  Basically the idea is this: print a bunch of money, distribute it to average Canadians and poorer Canadians, and before too long the large bulk of that money will be in the hands of the wealthy... drawn there by a gigantic sucking force.

I only have anecdotal evidence right now. The major banks all posted huge increases in their profits this year. Lots of Canada's biggest companies and richest people have also done very well in the past year.  I recall seeing an article that tracked a number of Canadian billionaires and saw several of them had seen huge increases in their wealth. Instead of giving money directly to the rich in the form of tax cuts, we're now giving it indirectly to the rich in the form of money transfers to the masses. It takes a slightly more circuitous route to get there, but the destination is the same.

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Offline Michael Hardner

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Re: Economics Culture
« Reply #216 on: May 29, 2021, 05:38:16 pm »
Sounds like MMT, which I have posted about.

I think it could go bad quickly, though...

Offline Queefer Sutherland

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Re: Economics Culture
« Reply #217 on: May 29, 2021, 05:47:44 pm »
We've all heard of the "Trickle Down" theory and we all know it's BS.

I've been pondering a modern corollary that I've called the "Hoover Up" theory.  Basically the idea is this: print a bunch of money, distribute it to average Canadians and poorer Canadians, and before too long the large bulk of that money will be in the hands of the wealthy... drawn there by a gigantic sucking force.

I only have anecdotal evidence right now. The major banks all posted huge increases in their profits this year. Lots of Canada's biggest companies and richest people have also done very well in the past year.  I recall seeing an article that tracked a number of Canadian billionaires and saw several of them had seen huge increases in their wealth. Instead of giving money directly to the rich in the form of tax cuts, we're now giving it indirectly to the rich in the form of money transfers to the masses. It takes a slightly more circuitous route to get there, but the destination is the same.

 -k

If you give the masses money, they will buy stuff from people who own businesses who are often rich, and/or park it in savings accounts or put it in the markets.  So I think rich and poor all benefit.

Then what will the rich do with that money?  Many different things I guess.  They could invest in markets or their own businesses, which means creating more jobs for the masses.

The thing that sucks is inflation, especially now housing inflation.  That won't benefit the average home owner unless they at some point sell and buy in a less expensive market.  It benefits the developers, banks, real estate speculators, and governments since rising property values mean rising property taxes and more tax revenue.
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Offline waldo

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Re: Economics Culture
« Reply #218 on: May 29, 2021, 11:54:22 pm »
Inflation rate hits 3.4%

wait, what? That's 3.4% in April 21 (as compared to April 20) - yes? In any case, is CPI like, uhhh... inflation inflation (what the Bank of Canada (BoC) uses CPI to target)... like that? March CPI was 2.2% - surely those poindexter's at the BoC aren't futzed by monthly (12 month) percentage changes... surely the BoC is more interested in a calendar year annual average - surely! Wait now waldo, aside from all those caveats associated with CPI itself, isn't there an overriding consideration related to the Covid-19 pandemic itself... one is which consumers experienced a significant decline in prices from February to April 2020 - surely in the coming months, (base year effecting) price declines observed in March and April 2020 will fall out of the 12-month price movement - surely!

what was your point member kimmy - what was your point?

Offline kimmy

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Re: Economics Culture
« Reply #219 on: May 30, 2021, 02:01:50 pm »
the kimmo merely posts a topical headline! Interpret as you wish!

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Offline kimmy

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Re: Economics Culture
« Reply #220 on: May 30, 2021, 02:04:36 pm »
Sounds like MMT, which I have posted about.

I think it could go bad quickly, though...

I don't think the goal of MMT is the enrichment of the wealthy by increasing public debt. I think that's merely a side-effect, which we should be trying to counteract.

What kind of policy moves might slow or counteract the flow of money to people who already have money?

 -k
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Offline Michael Hardner

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Re: Economics Culture
« Reply #221 on: May 30, 2021, 02:10:00 pm »
I don't think the goal of MMT is the enrichment of the wealthy by increasing public debt. I think that's merely a side-effect, which we should be trying to counteract.

What kind of policy moves might slow or counteract the flow of money to people who already have money?

 -k

Keynsian economics ?  Pretty old stuff from the 20th century.

Offline waldo

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Re: Economics Culture
« Reply #222 on: May 30, 2021, 02:17:38 pm »
the kimmo merely posts a topical headline! Interpret as you wish!

the kimmo finds a nothingBurger... topical? As for interpreting, yes, yes indeed - the waldo interpreted the kimmo's bigTimeFail... interpretive facts that you won't touch; that you're running away from!

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Offline kimmy

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Re: Economics Culture
« Reply #223 on: May 30, 2021, 02:40:07 pm »
Keynsian economics ?  Pretty old stuff from the 20th century.

Keynesian economics involves expanding or contracting government spending in response to economic conditions.   It really doesn't address the flow of wealth to the wealthiest.

 -k
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Offline kimmy

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Re: Economics Culture
« Reply #224 on: May 30, 2021, 02:41:49 pm »
the kimmo finds a nothingBurger... topical? As for interpreting, yes, yes indeed - the waldo interpreted the kimmo's bigTimeFail... interpretive facts that you won't touch; that you're running away from! 

the kimmo wonders why the waldo is so agitated by this!  Mention of inflation is clearly a no-no in waldo country, hey hey?

 -k
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