{"id":6716,"date":"2013-02-14T00:38:58","date_gmt":"2013-02-14T05:38:58","guid":{"rendered":"http:\/\/goldstocksforex.com\/?p=6716"},"modified":"2013-02-14T00:38:58","modified_gmt":"2013-02-14T05:38:58","slug":"cause-of-the-20078-crash-and-threatened-double-dip-in-2010","status":"publish","type":"post","link":"https:\/\/thepatientinvestor.com\/index.php\/2013\/02\/14\/cause-of-the-20078-crash-and-threatened-double-dip-in-2010\/","title":{"rendered":"Cause of the 2007\/8 crash and threatened double-dip in 2010"},"content":{"rendered":"

Here is the smoking gun. Note the sharp contraction in the US monetary base before the last two recessions and again in 2010. Monetary base (M0) is plotted net of excess bank reserves on deposit with the Fed, which are not in circulation. The Fed responded after the contraction had taken place, instead of anticipating it.<\/p>\n

\"Monetary<\/p>\n

The long-term problem is that the monetary base should not be expanding at 10 percent a year. More like 3% to 5% — in line with real GDP growth.<\/p>\n","protected":false},"excerpt":{"rendered":"

Here is the smoking gun. Note the sharp contraction in the US monetary base before the last two recessions and again in 2010. Monetary base (M0) is plotted net of excess bank reserves on deposit with the Fed, which are not in circulation. The Fed responded after the contraction had taken place, instead of anticipating … <\/p>\n

Continue reading “Cause of the 2007\/8 crash and threatened double-dip in 2010”<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[31,34],"tags":[1313,1352,2340],"class_list":["post-6716","post","type-post","status-publish","format-standard","hentry","category-the-fed-banks-interest-rates","category-us-canada-countries-regions","tag-excess-reserves","tag-fed","tag-monetary-base"],"yoast_head":"\nCause of the 2007\/8 crash and threatened double-dip in 2010 - the patient investor<\/title>\n<meta name=\"robots\" content=\"noindex, follow\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Cause of the 2007\/8 crash and threatened double-dip in 2010 - the patient investor\" \/>\n<meta property=\"og:description\" content=\"Here is the smoking gun. 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The Fed is well aware of the situation ...and has\u2026","rel":"","context":"In "Banks & Interest Rates"","block_context":{"text":"Banks & Interest Rates","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/economy\/the-fed-banks-interest-rates\/"},"img":{"alt_text":"Fed Excess Reserves- Weekly","src":"https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2014\/2014-07-14-fed-excessreserves-wk.png?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2014\/2014-07-14-fed-excessreserves-wk.png?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2014\/2014-07-14-fed-excessreserves-wk.png?resize=525%2C300&ssl=1 1.5x"},"classes":[]},{"id":8467,"url":"https:\/\/thepatientinvestor.com\/index.php\/2013\/09\/23\/interest-on-reserves-settlement-and-the-effectiveness-of-monetary-policy\/","url_meta":{"origin":6716,"position":4},"title":"Interest on Reserves, Settlement, and the Effectiveness of Monetary Policy","author":"ColinTwiggs","date":"September 23, 2013","format":false,"excerpt":"Joshua R. Hendrickson suggests that paying interest on excess reserves at the Fed reduces the effectiveness of monetary policy. Money paid to purchase Treasuries finds its way back to the Fed in the form of excess reserves. Here is the abstract from his paper: Over the last several years, the\u2026","rel":"","context":"In "Banks & Interest Rates"","block_context":{"text":"Banks & Interest Rates","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/economy\/the-fed-banks-interest-rates\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":16023,"url":"https:\/\/thepatientinvestor.com\/index.php\/2017\/10\/23\/fed-flunks-econ-101\/","url_meta":{"origin":6716,"position":5},"title":"Fed flunks econ 101?","author":"Colin Twiggs","date":"October 23, 2017","format":false,"excerpt":"Caroline Baum's opinion on the Fed's approach to inflation: For all the sturm und drang about the Fed debasing the dollar and sowing the seeds of the next great inflation, the public\u2019s demand for money has increased. The increased desire to hold cash and checkable deposits has risen to meet\u2026","rel":"","context":"In "Banks & Interest Rates"","block_context":{"text":"Banks & Interest Rates","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/economy\/the-fed-banks-interest-rates\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"_links":{"self":[{"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/posts\/6716","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/comments?post=6716"}],"version-history":[{"count":0,"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/posts\/6716\/revisions"}],"wp:attachment":[{"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/media?parent=6716"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/categories?post=6716"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/tags?post=6716"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}