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Federal Reserve lent $300B in emergency funds to banks in the past week

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31–40 of 262 posts

Re: Federal Reserve lent $300B in emergency funds to banks in the past week

#31

Earlier quoted context omitted.

> QE has no impact on inflation This is the most false statement ever. Anything that increases the money supply will increase inflation.

> Anything that increases the money supply will increase inflation. Except we have actual numbers and history to prove that false....

Here are the numbers to prove it true https://fred.stlouisfed.org/series/WM2NS

Re: Federal Reserve lent $300B in emergency funds to banks in the past week

#32
post #3

This is another QE/Quantitative Easing, even if they don't call it that way. I hope inflation doesn't come back/get higher again because then we'd likely see the kind of second wave inflation people saw in the 70s.

It’s a loan, not QE. QE is no strings attached money injected into the market. QT is still ongoing as of last week, however, I don’t see it lasting. I do think a .25 rate hike will still happen.

It's a loan whose collateral is taken at par value rather than market price, which essentially increase the Fed's balance sheet.

As of Wednesday last week, 4 months of QT have been reverted in a single week: https://fred.stlouisfed.org/series/WALCL

Re: Federal Reserve lent $300B in emergency funds to banks in the past week

#33

Earlier quoted context omitted.

> Anything that increases the money supply will increase inflation. Except we have actual numbers and history to prove that false....

Source? Did we not have rapid asset inflation since QE started in 08? Inflation pops up in all sorts of ways, not just blanket across the board.

Typically people mean core goods (CPI) when they say inflation not stocks and crypto

Re: Federal Reserve lent $300B in emergency funds to banks in the past week

#34
post #3

This is another QE/Quantitative Easing, even if they don't call it that way. I hope inflation doesn't come back/get higher again because then we'd likely see the kind of second wave inflation people saw in the 70s.

Agree it's QE. For those that say this isn't QE, it's understandable given the "original sin of QE" as Ricardo Reis put it: https://twitter.com/R2Rsquared/status/1576164361898708998?t=... (this episode is QE type 3 in his taxonomy)

Turning "QE" into a catchall for anything even sort of related to central banks holding more bonds isn't helpful. When words have too many meanings they have none, communication breaks down and people talk past each other, exactly as is happening here.

Re: Federal Reserve lent $300B in emergency funds to banks in the past week

#35
post #10
post #3

This is another QE/Quantitative Easing, even if they don't call it that way. I hope inflation doesn't come back/get higher again because then we'd likely see the kind of second wave inflation people saw in the 70s.

QE has no impact on inflation because loan origination is not reserve constrained, because banks can always use their government securities as collateral

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Re: Federal Reserve lent $300B in emergency funds to banks in the past week

#36

Id be curious to know how much physical currency has been withdrawn and if there are pressures on that. Inter-bank deposits are covered for people fleeing bad banks, but anecdotally I know a few people who are withdrawing all their hard cash. I wonder if central banks will have issues with that soon.

[flagged]

> It's all about crypto

> Fiat is trash

Okie dokie.

Re: Federal Reserve lent $300B in emergency funds to banks in the past week

#37

Id be curious to know how much physical currency has been withdrawn and if there are pressures on that. Inter-bank deposits are covered for people fleeing bad banks, but anecdotally I know a few people who are withdrawing all their hard cash. I wonder if central banks will have issues with that soon.

I have no idea, but that would be a real shit show if they didn't have physical currency due to a jump in demand.

Re: Federal Reserve lent $300B in emergency funds to banks in the past week

#38
post #3

This is another QE/Quantitative Easing, even if they don't call it that way. I hope inflation doesn't come back/get higher again because then we'd likely see the kind of second wave inflation people saw in the 70s.

It would seem like the US economy has become addicted to stimulus, bailouts, and other intervention. That is what reserve currency does.

Re: Federal Reserve lent $300B in emergency funds to banks in the past week

#39

Earlier quoted context omitted.

> Anything that increases the money supply will increase inflation. Except we have actual numbers and history to prove that false....

Here are the numbers to prove it true https://fred.stlouisfed.org/series/WM2NS

What does this graph prove exactly? It goes up steadily for decades where there weren't any inflation, and then had a sudden bump 2 years before the inflation started.

Inflation was caused by the massive fiscal spending (stimmies) not the FED

Re: Federal Reserve lent $300B in emergency funds to banks in the past week

#40

Id be curious to know how much physical currency has been withdrawn and if there are pressures on that. Inter-bank deposits are covered for people fleeing bad banks, but anecdotally I know a few people who are withdrawing all their hard cash. I wonder if central banks will have issues with that soon.

[flagged]

> Fiat is trash

I'll gladly take that trash off your hands if you hate it so much

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