salmotrutta
New Member
Joined: Aug 13, 2021 13:08:54 GMT -5
Posts: 44 
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Post by salmotrutta on Jun 27, 2023 14:45:16 GMT -5
The Ph.Ds. don’t understand money and central banking.
Loans/bank credit = demand deposits. Different deposit classifications originate from the shifting of those demand deposits. So, all monetary savings originate within the system. And the only way to activate those savings is for their owners, saver-holders, to spend their funds directly, or make investments outside of the commercial banking system.
Otherwise, all bank-held savings have a zero payments velocity. As the demand for money is falling (velocity is rising), savings are being activated. The dis-savings and activation are historic (a reversal of the 70’s).
Based on the rate-of-change in our “means-of-payment” money supply, the May #s, there will be no recession this year.
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salmotrutta
New Member
Joined: Aug 13, 2021 13:08:54 GMT -5
Posts: 44
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Post by salmotrutta on Jun 27, 2023 15:04:56 GMT -5
The O/N RRP facility volumes have now decreased by $441b, from $2,375b on 3/31/23 to $1961b on 6/26/23.
Contrary to the FED’s GAAP accounting, this increases the supply of loan-funds necessary to cover the FED’s issuance.
One wonders if the award rate was higher than T-bills, what would have happened to interest rates after the recent deluge in new debt.
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