borodog's mistaken understanding of M3...don't listen to his drivel

[ianlippert]

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those who don't understand econ (many who read and have been converted) take it as such a literal relationship.


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Oh no somebody doesnt understand econ?!?!?!?

Some guy on the internet is spreading misinformation and confusing the issue to a small minority of people on a poker msg board.

Dude, go watch anything on CNN or the majority of stuff that gets taught at universities. To blow up at Boro for one minor point (the 'conspiracy' of the non-publication of the M3) makes you look absolutely insane.

You've really done yourself a disservice. You are one of the non austrians whos posts I enjoy reading because I think you have a lot of good things to say. But now whenever I'm going to read one of your posts I'm going to be thinking to myself "oh its THAT guy".

You could have just made a civil post asking boro to clarify his position on M3. Of course that would have been much less entertaining for the rest of us.

[Exsubmariner]

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And?

What is it like in your head dude? Because on the outside IT'S [censored] CRAZY.

What do you think this shows?

Uh, duh, I already said that I thought the important statistic was M3.

When will you admit it isn't even about M3, but rather the fact that you are an insulting a-hole that can't admit he's an insulting a-hole?


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Alright, that's it.....

For meddling with powers in the universe that are beyond your comprehension and embodied by a green name, I emplore the gods that an instant permaban be brought forth upon you.....

[bills217]

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This thread needs more lolcats.

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A+ would read again

[sightless]

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Once I see someone use words like "destract" it really makes it hard to take their point seriousl

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dont read poker forums then

[DcifrThs]

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those who don't understand econ (many who read and have been converted) take it as such a literal relationship.


[/ QUOTE ]

Oh no somebody doesnt understand econ?!?!?!?

Some guy on the internet is spreading misinformation and confusing the issue to a small minority of people on a poker msg board.

Dude, go watch anything on CNN or the majority of stuff that gets taught at universities. To blow up at Boro for one minor point (the 'conspiracy' of the non-publication of the M3) makes you look absolutely insane.

You've really done yourself a disservice. You are one of the non austrians whos posts I enjoy reading because I think you have a lot of good things to say. But now whenever I'm going to read one of your posts I'm going to be thinking to myself "oh its THAT guy".

You could have just made a civil post asking boro to clarify his position on M3. Of course that would have been much less entertaining for the rest of us.

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it's his methodology he uses. i'm not the only one that feels this way since i've gotten PM's in agreement. i'm just the only one that lost it as a result of a history i have with borodog.

here is some more history where i jibed at him passive aggressively and he flew off the handle.

Linky

i blew up at boro to blow up at boro. the M3 issue is just the outlet. i'm glad that it at least was entertaining to you. it made me feel good as the outlet i mentioned.

in terms of the disservice to myself, the content of my posts haven't changed and i doubt there will be future episodes like this and there certainly haven't been any with anybody else. he just really got under my skin. my choice to let it happen and go at him like that.

so you can think "oh that guy" and thats fine. the overall content of my posts though will certainly not change.

i'm about to make a civil one that i hope we can discuss and get something out of (A follow up to the inflation/bernanke/paul thread)

take care,
Barron

[DcifrThs]

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... there are circumstances that can exist where the "printing of money by the fed" doesn't devalue the dollar.

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I really don't understand how, all else equal, expanding the money supply doesn't devalue the dollar.

I could understand that you might see a situation where the money supply is expanded but less than the market was expecting and the dollar rallies. Also if another country expands its money supply more than we do then our currency should increase in value relative to theirs.

Again, if you were to control for other factors, shouldn't expanding the money supply always lead to a devaluing of the dollar?

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i was using that to explain more clearly why the poker example was bad.

here is the intial statement i responded to:

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When we lower interest rates, the value of the currency goes down, because more money is printed. Right?

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i pointed out that the currency goes down b/c of interest rate diffs. interest rate diffs, assuming it is the US;s thats falling, come from the fed releasing more money (increasing money supply). it is just the clearer way to think about it.

that statement was likely read without understanding the distinction which is why i spoke up in the BFI thread.

we can all clearly agree that when the fed has a low interest rate bias (which it has exhibited for a long time), the value of the dollar, all else equal, will decline relative to its trading partners.

i simply want to make sure we all understand both WHY and WHY NOT. that understanding seems slightly lacking which, again, is why i chimed in.

Barron

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A currency's value is not simply measured by its exchange rate with other fiat money.

A currency's value is determined by what it can purchase across the board.

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this is definitely a discussion we can have. arguably, for those that consume in US dollars, a weaker currency does little to alter their standard of living.

the value of the dollar vs. other currencies is broken down by:

~50% interest rate diffs
~30% growth diffs
~20% CA diffs
~10% momentum/other

#s might be off but it is from a bernstein study on the decomposition of currency returns.

Barron

[Ineedaride2]

I almost never talk like this but....well..



lol this thread is dum.

[Zygote]

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arguably, for those that consume in US dollars, a weaker currency does little to alter their standard of living.


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What if domestic prices rise significantly?

[Orlando Salazar]

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arguably, for those that consume in US dollars, a weaker currency does little to alter their standard of living.

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Cause all goods Americans consume are produced in the US, right?

[AlexM]