Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Booms, Busts, and Recoveries -- Ignore unavailable to you. Want to Upgrade?

To: Maurice Winn who wrote (13934)	1/25/2002 3:37:47 PM
From: Ilaine	Read Replies (2) \| Respond to of 74559

But the Federal Reserve doesn't print money. Not literally, and not really figuratively any more, since the Humphey-Hawkins law expired in 2000. Money is printed by the Department of the Treasury, in a building here in Washington on 14th St. And the Fed can control the growth of M1, but has no control over the growth of M2 and M3. Reserve requirements don't apply to the components of M2 and M3, just M1. So they don't even try to control the growth of money anymore. ny.frb.org (Technically, M1 is part of M2, and M2 is part of M3 - so to be perfectly accurate I need to say that reserve requirements do not apply to M2 and M3 absent M1.) The big growth in the money supply comes from the money market.

To: Maurice Winn who wrote (13934)	1/25/2002 3:39:04 PM
From: LLCF	Read Replies (1) \| Respond to of 74559

<The money-printing game is great for the USA and while everything ticks along nicely, it's fair reward for providing a robust financial system which the world can trade on. It's like the invention of CDMA which the world can communicate with provided a royalty is paid to QUALCOMM. > I find this a bit naive to be honest.... on the one hand you're saying "well, the foreign bagholders of dollars are a boon for us , and of course those same foreigners will honor QCOM's patents! LOL, believe me, if the global economy hit's the fan, China will be using all the CDMA they want.... free. At least with dollars they do hold SOMETHING that will be worth something as the US will honor them outside absolute collapse, QCOM could easily be stripped of Patents in China by simple decree if things look a bit dodgy there. DAK