Most people don't advertise their impotence. Thank you.
I agree with measured accountability. However, I think you'll find few people get destroyed on one moment. They have the moment, and then they double down, triple down, and keep digging (such as the Bodega Bro).
I also agree there should be room for policy differences, and I hope I did not treat you that way on student loan forgiveness.
Sometimes people who treat others nicely get cancelled.
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No you absolutely did not. Our disagreements that I can recall have been respectful. You present cogent arguments.
And by the way, I do see both sides of the student loan argument and I am happy for people whose lives are better because their loans are forgiven. It is a difference between personal feelings and public policy.
Peace brother.
Al-O-Meter
Well-Known Member
The assets created by Congress is government debt in the form of bonds issued by the department of the treasury. Financial institutions taking that debt counts it as a reserve asset. It is an asset but it is not currency.
I think the challenge we are having is that you are using unconventional terminology and usage, so it is hard to understand the substance of your argument.
When you say" "Congress does have the power to create assets" if you mean that "Congressional spending in excess of revenue necessitates the sale of bonds by the Treasury to fund the debt" then that is correct.
When you say "...that it does not have the power to revoke" now you've stepped into some tricky territory. Congress controls the purse strings and any year they could pass a budget that has revenue > spending, which would reduce the amount of money in circulation (e.g., M1) and reduce the number of financial assets (i.e., bonds). Bottom line: Congress has as much power to "create assets" as they do to "revoke assets" (increase revenue, reduce spending). This can also happen in the absence of Congressional action, in the case of economic growth that increases revenue. If you are saying that it is impossible to reduce the national debt, you may be suffering from a recency bias, but believe me, it has happened and it is not impossible.
Finally, you said: "Congress does have the power to create assets that it does not have the power to revoke. It has to be that way in order for the debt to be salable"
This has me scratching my heat. Why do you believe that the "revocability" is necessary for selling debt? The salability of Treasuries has to do simply with risk and reward, and if a government is stable and investors perceive the risks to be low, they are willing to invest at a low interest rate. Higher risk, higher required returns.
Al-O-Meter
Well-Known Member
I must be a masochist but nearly everything you wrote is wrong. First of all, M1 is not a measure of the money in circulation but rather the currency owned by foreign entities. M1 has more to do with exchange rates than inflation. The component you are likely thinking of is M2. The only reason M1 was brought up was because One Brow is completely out of his depth and likely read something on the internet that he didn’t understand.
Secondly, Congress passing a budget in which spending exceeds revenue does not necessarily cause M2 to rise. The Fed has been holding M2 almost dead flat since January and Congress isn’t anywhere close to spending less than it takes in. The reverse is also true in that M2 could rise even if Congress got crazy and passed a fiscally responsible budget.
I have no idea where you are going with bonds being revocable because I said the opposite, but wherever you were going with it doesn’t reduce the amount of Federal Reserve currency in circulation.
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D
Deleted member 365
Guest
This is exactly what the working class wants and will definitely address issues such as gas prices and inflation…
View: https://twitter.com/ronfilipkowski/status/1584576862767849472?s=46&t=42KBKsF16Sttn-8qnv2_Hg
View: https://twitter.com/ronfilipkowski/status/1584576862767849472?s=46&t=42KBKsF16Sttn-8qnv2_Hg
D
Deleted member 365
Guest
It’s hard for a democracy to function when 30 percent of the country’s population lives in a fantasyland of grievance, paranoia, narcissism, and disinformation from conservative media.
The real tell is when the one Trumper says, “that officer who had a heart attack on Jan 6 maybe shouldn’t have been an officer.” That’s something you say when you know you’re wrong but don’t want to admit it. Further proof that Trumpers are either woefully and willfully ignorant and/or suffering from a severe character or anti-social flaws.
View: https://twitter.com/donwinslow/status/1584741095086645248?s=46&t=42KBKsF16Sttn-8qnv2_Hg
The real tell is when the one Trumper says, “that officer who had a heart attack on Jan 6 maybe shouldn’t have been an officer.” That’s something you say when you know you’re wrong but don’t want to admit it. Further proof that Trumpers are either woefully and willfully ignorant and/or suffering from a severe character or anti-social flaws.
View: https://twitter.com/donwinslow/status/1584741095086645248?s=46&t=42KBKsF16Sttn-8qnv2_Hg
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Al-O-Meter
Well-Known Member
Thank you for continuing to demonstrate why democrats should all be voted out. The top three issues on the minds of voters are the economy, inflation, and crime. The only thing democrats and their supports have to offer is "hey, look over there". In this case you are pointing at outrage over someone who isn't even on the ballot and hasn't repented anyone on the ballot since 2016.
Democrats had their shot. The have majority control over the house, majority control over the senate, and the presidency. In the three issues most important to voters in 2022, democrats royally screwed up each and every one of those issues. They need to go. Those concerned about the state of the economy, inflation, or the rise in crime now gets to have their say.
Let's see, do I believe you, or the Federal Reserve? Seriously, I've studied economics at the graduate level but this is stuff you need to know to pass high school econ.
"M1 consists of (1) currency outside the U.S. Treasury, Federal Reserve Banks, and the vaults of depository institutions; (2) demand deposits at commercial banks (excluding those amounts held by depository institutions, the U.S. government, and foreign banks and official institutions) less cash items in the process of collection and Federal Reserve float; and (3) other liquid deposits, consisting of OCDs and savings deposits (including money market deposit accounts). "
M1
View a measure of the most-liquid assets in the U.S. money supply: cash, checking accounts, traveler's checks, demand deposits, and other checkable deposits.
fred.stlouisfed.org
Wait, are you just trolling?
Dude, the correlation between deficit spending and money supply is strong, axiomatic, based on economic theory and based on empirical evidence. This is elementary stuff, where did you study economics? You must be a troll.
