tag:blogger.com,1999:blog-8897997766931633186.post2792928564670811159..comments2024-02-14T03:21:37.506-05:00Comments on Monetary Freedom: Central Banking is Not Central PlanningBill Woolseyhttp://www.blogger.com/profile/06330232724290161369noreply@blogger.comBlogger6125tag:blogger.com,1999:blog-8897997766931633186.post-30722582351343474972016-10-28T04:53:55.379-04:002016-10-28T04:53:55.379-04:00It’s always vital to keep eye on their policy whil...It’s always vital to keep eye on their policy while I don’t think I need to make too much effort with this epic blog which already do the job for me in every way. I really enjoy it with broker like OctaFX which is world class and provide me with daily market new and updates, it’s ever easy and helps me with trading smoothly and brings a lot of rewards for me while it’s absolutely free as well to use which helps me even more.Jackleinnoreply@blogger.comtag:blogger.com,1999:blog-8897997766931633186.post-92195478670151205162011-08-16T12:21:06.139-04:002011-08-16T12:21:06.139-04:00Bill, in case you missed it on the commentary to K...Bill, in case you missed it on the commentary to Kurt's blog, I wrote there that I think your argument against comparing central banking to central planning "goes to far": "After all, we condemn central planning because we believe that it is no substitute for using market-determined relative prices to guide the use of resources. The "central planning" of money differs from the central planning of any other good because (1) the profit motive alone ceases to be a reliable guide to optimal money creation and (2) suboptimal money creation introduces "noise" into the price system, and so undermines somewhat the working of that system, and hence its advantages relative to central planning. You don't get these problems when the state monopolizes, say, electricity-generation or automobile production."George Selginhttp://www.terry.uga.edu/~selgin/noreply@blogger.comtag:blogger.com,1999:blog-8897997766931633186.post-56859182035285881052011-08-15T09:21:02.088-04:002011-08-15T09:21:02.088-04:00I agree that purchasing government guaranteed mort...I agree that purchasing government guaranteed mortgage backed securities is pointless, but it seems like some of those on the FOMC don't agree and think they are directing credit to where it is most needed.<br /><br />And it is me that was being a blockhead. It was the homeowner's liabilities that worry you. <br /><br />My view on that is to end the recession first, and then let's see.Mayor Bill Woolseyhttps://www.blogger.com/profile/15439136665155575382noreply@blogger.comtag:blogger.com,1999:blog-8897997766931633186.post-51039414521874160552011-08-15T07:42:55.607-04:002011-08-15T07:42:55.607-04:00Mayor Bill, (or is it ex-Mayor?)
OK. Maybe I'm...Mayor Bill, (or is it ex-Mayor?)<br />OK. Maybe I'm dumb as a stump. (Feel free to be blunt.) If the securities are already guaranteed by the Treasury, why purchase them in the first place? Regarding the liabilities part: Surely, some of those mortgages are still being repaid by the borrowers. No? Wouldn't it make more sense to address the distressed borrowers equally? <br />NanuteAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-8897997766931633186.post-21522883113069710162011-08-15T07:27:31.231-04:002011-08-15T07:27:31.231-04:00All the mortgage backed securities held by the Fed...All the mortgage backed securities held by the Fed are already guaranteed by the Treasury.<br /><br />I don't understand the part about the parties responsible for the liabilities.<br /><br />If you mean the banks' liabilities, then they banks are still responsible for those, but they now have a very safe asset (reserve balances at the Fed) rather than a risky one (mortgage backed securities.) <br /><br />And while it is true that government guaranteed mortgage backed securities are more risky than reserve balances at the Fed, there isn't that much difference. <br /><br />And, more importantly, the banks that were holding the mortgage backed securities that aren't guaranteed by the Treasury are still stuck with them. The Fed didn't buy those.Mayor Bill Woolseyhttps://www.blogger.com/profile/15439136665155575382noreply@blogger.comtag:blogger.com,1999:blog-8897997766931633186.post-76942221203123221972011-08-15T06:39:37.988-04:002011-08-15T06:39:37.988-04:00The Fed's huge holdings of mortgaged backed se...The Fed's huge holdings of mortgaged backed securities today is hard to explain except as an effort to channel credit into the housing market. Really? I suppose it could be construed that way. It could also be a way of repairing very weak balance sheets. No? In essence the Fed has relieved the banks of questionable assets with no corresponding relief for the parties responsible for the liabilities. <br />NanuteAnonymousnoreply@blogger.com