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Re: Lol, QE 3? Try raising wages and giving something back to people to SPEND

Not at all... you are the one proffering the nebulous theory that markets change because we collectively feel like it and not in response to stimuli. So far you are not convincing.

So what? If price is set by a market or a central bank the mechanism still exists and functions well only the inputs to the mechanism are changed. You may as well say Singapore is immune to gravity!

It is a mistake to think that is what I am arguing. Directing trend and fueling a preexisting fire are two very different things.

All trends in financial markets are heavily impacted by the underlying mechanics of the money supply, this is what central banks ultimately cannot control. This is what caught goldbugs short in 2008

Again so what? If you understand the argument I put forward it fully explains both short and long term cycles and the limits of central bank intervention, exactly where they can have an effect and why and similarly where they can't and why. More importantly it makes it obvious as to why they should not mis-price money and why they should leave it to the market to set rates.

There are four elements that decide price, supply and demand for the item and supply and demand for the currency that the item is price in. You are effectively arguing that altering the supply and demand for money will have no impact on price. This is patently not so, in the short run it can artificially buoy price if there is sufficient marginal utility left in the market and in the long run it pushes price beyond the normal limits that a market would tolerate.

This may help you....playing with money supply is directly analogous to taking cocaine, the dynamic is damn near identical to the introduction of an artificial stimulus to the body. It will take you to higher highs and lower lows faster than you would achieve in a normal balanced state. Jiggering rates is altering the money supply.... !

Your argument is complete nonsense to me, the idea that we collectively move in a pack for no apparent reason is an affront to reason! You may not get the reason, as appears to be, but none the less we do nothing without reason.

<blockquote data-quote="Mr Z" data-source="post: 728959" data-attributes="member: 37089">Re: Lol, QE 3? Try raising wages and giving something back to people to SPEND&nbsp;Not at all... you are the one proffering the nebulous theory that markets change because we collectively feel like it and not in response to stimuli. So far you are not convincing. &nbsp;So what? If price is set by a market or a central bank the mechanism still exists and functions well only the inputs to the mechanism are changed. You may as well say Singapore is immune to gravity!It is a mistake to think that is what I am arguing. Directing trend and fueling a preexisting fire are two very different things.All trends in financial markets are heavily impacted by the underlying mechanics of the money supply, this is what central banks ultimately cannot control. This is what caught goldbugs short in 2008Again so what? If you understand the argument I put forward it fully explains both short and long term cycles and the limits of central bank intervention, exactly where they can have an effect and why and similarly where they can&#039;t and why. More importantly it makes it obvious as to why they should not mis-price money and why they should leave it to the market to set rates.There are four elements that decide price, supply and demand for the item and supply and demand for the currency that the item is price in. You are effectively arguing that altering the supply and demand for money will have no impact on price. This is patently not so, in the short run it can artificially buoy price if there is sufficient marginal utility left in the market and in the long run it pushes price beyond the normal limits that a market would tolerate. This may help you....playing with money supply is directly analogous to taking cocaine, the dynamic is damn near identical to the introduction of an artificial stimulus to the body. It will take you to higher highs and lower lows faster than you would achieve in a normal balanced state. Jiggering rates is altering the money supply.... !Your argument is complete nonsense to me, the idea that we collectively move in a pack for no apparent reason is an affront to reason! You may not get the reason, as appears to be, but none the less we do nothing without reason.</blockquote>

[QUOTE="Mr Z, post: 728959, member: 37089"] [b]Re: Lol, QE 3? Try raising wages and giving something back to people to SPEND[/b] Not at all... you are the one proffering the nebulous theory that markets change because we collectively feel like it and not in response to stimuli. So far you are not convincing. So what? If price is set by a market or a central bank the mechanism still exists and functions well only the inputs to the mechanism are changed. You may as well say Singapore is immune to gravity! It is a mistake to think that is what I am arguing. Directing trend and fueling a preexisting fire are two very different things. All trends in financial markets are heavily impacted by the underlying mechanics of the money supply, this is what central banks ultimately cannot control. This is what caught goldbugs short in 2008 Again so what? If you understand the argument I put forward it fully explains both short and long term cycles and the limits of central bank intervention, exactly where they can have an effect and why and similarly where they can't and why. More importantly it makes it obvious as to why they should not mis-price money and why they should leave it to the market to set rates. There are four elements that decide price, supply and demand for the item and supply and demand for the currency that the item is price in. You are effectively arguing that altering the supply and demand for money will have no impact on price. This is patently not so, in the short run it can artificially buoy price if there is sufficient marginal utility left in the market and in the long run it pushes price beyond the normal limits that a market would tolerate. This may help you....playing with money supply is directly analogous to taking cocaine, the dynamic is damn near identical to the introduction of an artificial stimulus to the body. It will take you to higher highs and lower lows faster than you would achieve in a normal balanced state. Jiggering rates is altering the money supply.... ! Your argument is complete nonsense to me, the idea that we collectively move in a pack for no apparent reason is an affront to reason! You may not get the reason, as appears to be, but none the less we do nothing without reason. [/QUOTE]

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