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....
Federal Reserve lent $300B in emergency funds to banks in the past week
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Re: Federal Reserve lent $300B in emergency funds to banks in the past week
#32This 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.
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
#33Earlier 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.
Re: Federal Reserve lent $300B in emergency funds to banks in the past week
#34This 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)
Re: Federal Reserve lent $300B in emergency funds to banks in the past week
#35This 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
Re: Federal Reserve lent $300B in emergency funds to banks in the past week
#36Id 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.
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> Fiat is trash
Okie dokie.
Re: Federal Reserve lent $300B in emergency funds to banks in the past week
#37Id 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.
Re: Federal Reserve lent $300B in emergency funds to banks in the past week
#38This 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.
Re: Federal Reserve lent $300B in emergency funds to banks in the past week
#39Earlier 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
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
#40Id 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.
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I'll gladly take that trash off your hands if you hate it so much