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I've been hearing the phrase "late capitalism" for so long that I'm forced to conclude that the very concept of late cap...
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It is surely true that the price level cannot rise without a corresponding increase in the quantity of money or velocity or use of credit. ...
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As I write this it is mid-October in an even-numbered year. Elections are weeks away. Yesterday, I saw Republican candidates heavily adver...
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Went to Harbor Freight the other day. When I left, there was so much traffic I had to fight my way out of the parking lot -- at one p.m. on ... -
I'm not a fan of "diagrams" in economics, but sometimes... This is a screen capture of slide 36 from a SlideShare presentatio...
2 comments:
Art said:
"What happened here"
After 12 years you finally get around to asking that question...
2008 was the point where the Fed demonstrated that they actually believed their own Bullshit about controlling interest rates and employment.
When interest rates collapsed in the fall of 2008 the Fed in a desperate attempt to prop up interest rates sold treasury securities (the theory is that dumping securities on the open market causes the price to fall and thus the interest rate to rise). But it didn't work (not even a little bit) revealing once and for all that the Fed never had any control over interest rates (beyond the superstitious belief that they had this power - superstition has powerful until the day people suddenly realize it isn't)
You are a patient man.
Thanks Jim. Good answer, clear, concise. Makes sense.
First thing I did after seeing the graph: I went to the St Louis Fed's financial crisis timeline. I didn't find anything in there about that huge drop in Fed holdings of federal debt. Maybe the FOMC minutes tell the story... Maybe I will look.
Thanks for keeping an eye on me.
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