Stone@38, Actually, no. The Fed is continuing to remit its positive net interest income to the US Treasury as long as it lasts, so the Fed would start with less net worth. I am not quite as pessi...
I'm still left with the impression that debating the injustices of "hard money" is now of merely historical interest because QE has irreparably broken the hard money system anyway. We have a ZIRP...
Tim Young@38, so currently because interest rates are low, the Fed is building up a sort of war chest that in principle it could draw upon if it needed to in order to pay high interest on reserve...
@Stone, it's the other way round. The IOU is negative; in other words, the US Treasury accepts a debt to the Fed, to be paid down when (and if!) the normally positive net interest flow that the F...
Tim Young @35, as far as I could make out, that FT link simply said that if the Fed were to choose to pay high interest on reserves, then they would "fund" it by racking up an exponentially growi...
Goodd webb site you have here.. It's hatd tto find ggood quality writing likke yours these days. I honestly appresciate peopole like you! Takke care!! Also visxit mmy web page: esy (
In fact, Stone QE central banks have taken some steps to protect their independence. The BoE has been most careful not to get into the QE trap. In the UK, QE is actually on the balance sheet not ...
Tim Young @33, I was under the impression that the current situation with the Bank of England or the Fed or the Bank of Japan, was that there is such a surfeit of bank reserves (and the central b...
Stone, "If the central bank and the Treasury are really consolidated, then perhaps QE is a wash." Correct. "But QE means that the central bank looses the capacity to impose high interest rates un...
Tim Young @31, I guess it all boils down to whether it matters whether or not the central bank is somewhat independent from the Treasury or really consolidated with it. If the central bank and th...