Mish's Global Economic Trend Analysis

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Idiotic Proposals for Fed to Give Away Money Posted: 19 Sep 2014 12:27 PM PDT A Fiscal Times, Yahoo Finance article by by John Grgurich claims that Instead of QE, Fed Could Have Given $56,000 to Every Household in America . Grgurich formulated his article after reading "an intriguing piece just published in Foreign Affairs, Brown University political economist Mark Blyth and London-based hedge fund manager Eric Lonergan argue the Fed could have done better by pursuing a far different type of grand policy experiment." The "intriguing piece" is Print Less but Transfer More, Why Central Banks Should Give Money Directly to the People. Sheer Idiocy First, the Fed cannot give away money, it can only make money available for lending.  Second, the idea that the Fed should give away money is ludicrous, even it the Fed could.  Third, Grgurich is in severe need of math lessons as to what actually transpired.   The Math According to the census department the number of US households is 115,226,802. Base Money Supply has gone up from $848 billion at the start of 2008 to $4.150 Trillion today. That is an increase of roughly $3.3 trillion. An increase in money supply of $3.3 trillion is not the same thing as a gift of $3.3 trillion. At most, banks made 0.25% interest (free money) on excess reserves parked at the Fed. The actual amount of excess reserves is $2.7 trillion. 0.25% of $2.7 trillion is $6.75 billion. That is the amount the Fed effectively gives banks, per year. Spread among 115,226,802 households the gift would be $58.58 per year (less actually because excess reserves grew over time they did not suddenly hit $2.7 trillion). Mike "Mish" Shedlock http://globaleconomicanalysis.blogspot.com Mike "Mish" Shedlock is a registered investment advisor representative for SitkaPacific Capital Management. Sitka Pacific is an asset management firm whose goal is strong performance and low volatility, regardless of market direction. Visit http://www.sitkapacific.com/account_management.html to learn more about wealth management and capital preservation strategies of Sitka Pacific.

"Surprising" MH17 Crash Update Posted: 19 Sep 2014 07:33 AM PDT The title of this article, "Surprising" MH17 Crash Update, is accurate only in the sense the average sheep believes the average mainstream media report. Since that is the majority, the title is accurate. Mish readers, however, may find this report not surprising. Reader Marina from Toronto explains via email .... Hello Mish, My name is Marina. I am a long-time fan of your blog and a friend of Nicole Foss at Automatic Earth. I am also a volunteer translator for The Vineyard Saker website. Our team has just translated a very important report on the MH17 crash released by the Russian Union of Engineers. We have included several prominent journalists and other persons in the distribution of this important document. Regards, Marina Toronto Union of Engineers Report Please open your minds and download the Translated Report on MH17. Forget about the origin and give the report a read. It may open your eyes. Looking for another opinion? If so, please consider the Automatic Earth Commentary on MH17. I side with Raul on Automatic Earth who says "At the very least the report should be broadly discussed in western media, and western experts asked to refute what parts of it they find fault with." Indeed. Where is the discussion? My take: There is no government interest in any possibility other than a preordained self-serving US conclusion. Thus, there is not, nor will there be any mainstream media analysis of that nature barring a Watergate or Snowden-type disclosure. Mike "Mish" Shedlock http://globaleconomicanalysis.blogspot.com Mike "Mish" Shedlock is a registered investment advisor representative for SitkaPacific Capital Management. Sitka Pacific is an asset management firm whose goal is strong performance and low volatility, regardless of market direction. Visit http://www.sitkapacific.com/account_management.html to learn more about wealth management and capital preservation strategies of Sitka Pacific.

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