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: pogohere who wrote (87083)	9/29/2007 8:36:11 PM
From: pogohere	Read Replies (1) \| Respond to of 110194

Post #65 on RW's blog at wallstreetexaminer.com "Fekete might be on to something. I had no problem, on August 10/07 to buy 32 day T-bills yielding 4.8%. When are tried to roll them over on September 12/07 the shortest maturity I could get was 91 days with the yield of 3.8%. When I wanted to buy some more on September 21/07 the shortest paper available was 360 days. Nothing shorter at any price ……… unless I offered a premium."

To: pogohere who wrote (87083)	9/30/2007 1:49:12 PM
From: RJA_	Read Replies (2) \| Respond to of 110194

>>therefore, he says: "Regardless of statistical figures showing that the global money supply is increasing at an unprecedented rate, the hand-to-hand money supply may well be shrinking as hoarding demand for FR notes becomes voracious. The economy will be starved of hand-to-hand money. Depression follows deflation as night follows day." It seems to me that US$ paper vs US$ electronic is not a concern. It makes no sense to hoard us$ paper because: 1. Inflation rate on both is identical. 2. There is no intrinsic value to either, only what folks will do or provide for it in return for same. 3. Electronic will lead to more inflation faster, because of the reserve requirement multiplier effect 4. Where as cash under the mattress is effectively out of circulation and provides no multiplier 5. Electronic is more convenient (via debit or credit cards)... and if we ever get to Wiemar, we wont have to haul around wheelbarrows of money, just the same old debit card. Interesting question tho -- when does the foreign money stuffed under mattresses come into play? How large is it, and what will it do when it returns here? A more realistic concern, IMHO. RJA