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 : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: russwinter who wrote (36594)	7/22/2005 10:59:31 AM
From: Tommaso	Respond to of 110194

>>>The Fed will now be forced into the monetization game, no more transferring of inflation abroad.<<< That's sure the way it looks to me.

To: russwinter who wrote (36594)	7/22/2005 11:08:18 AM
From: Tommaso	Respond to of 110194

I just looked up "monetizing" in the index of Heilbroner's and Thurow's Economics Explained. On pages 117-118 we have the following: The inflationary argument is focused on the federal government's borrowing directly from the Federal reserve banks, by selling them its Treasury securities. This is called monetizing the debt. Monetizing the debt increases the ability of banks to lend money, which, as we shall see in the coming chapter, is the same thing as increasing the amount of money in the system. All economists agree that increasing the amount of money is usually inflationary.