Commodity prices, a barometer of excessive money creation, are depressed, except for OPEC-manipulated oil.
Other commodities, though, are starting to feel the impact of Greenspan's excessive money creation.
Why aren't bond investors reacting with more alarm to the process of money creation?
For inflation to accelerate, the money creation process must actually lead to increased spending.
E. (quantitative easing) 2, another round of money creation through conventional and novel means.
But with money creation running ahead of the fundamentals, there is reason for skepticism.
Money creation is a joint exercise between the central bank and the banking system.
Empirical evidence reveals that new money creation leads directly to devaluation of the dollar.
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Too much money creation would stoke inflation and likely cause the dollar to decline in foreign markets.
The Fed's excess money creation is still roiling and distorting economies and financial markets around the world.
You have unprecedented money creation here and you have Japan who went to 2% target last night.
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Ultimately, however, you would expect the dilutive effects of money creation to be a negative for the dollar.
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Alas, those excess savings are a euphemism for excess money creation by central banks, particularly the Federal Reserve.
My counterargument is that you don't go directly and immediately from reserve and money creation to rampant inflation.
Using your money creation power to boost consumer spending might just light the corporate hiring pilot light by jolting demand.
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The build-up in excess reserves reduced the money creation that would normally have accompanied net open market purchases of assets.
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Well, if September is any indication, this nascent recovery in private bank money creation may very well be a developing trend.
The short-term effect that money creation has on interest rates will affect investment patterns, often setting us up for future reversals.
It becomes an issue only if money creation is too rapid, threatening a buildup of inflation, or too slow, threaten recession.
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Economic research has shown that the path to prosperity is not money creation but getting the institutions right, and thus getting prices right.
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The question is, are private banks finally interested in putting these reserves to work, and in so doing actively re-entering the money creation business?
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But it is also worth remembering that central banks are not the only source of money creation: commercial banks are normally much more important.
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Thats true only if countries continue to permit excess money creation.
Says THE CONTRARIAN TAKE to Chairman Bernanke, it may be time for Money Mechanics 101, for it appears you do not understand the money creation process.
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Briefly dreaming of counterfeiting dollars in order to have more of them to spend, they learn from adults that private money creation is against the law.
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All this is not to say that private banks are about to turn on the monetary spigots and reclaim their dominant role in the money creation process.
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Comically, both sides believe that if they can manage the spending and money creation, that their expertise ensures a lack of what they presume inflation to be.
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However, it then takes an ever-increasing amount of new money creation, on the part of the central bank, to pull the economy away from falling asset prices.
On the very same day of the Deutsche Bank report Herr Dr. Jens Weidmann, president of the Bundesbank, gave a speech entitled Money Creation and Responsibility.
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It will be interesting to see if European banks will, indeed can keep the money creation process in gear in the absence of further ECB balance sheet growth.
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