Thailand's economic engine sputtering as global storm approaches

[Asiantravel]

Now do not shoot the messenger, but was in the meeting with my accountant.

Her mother or mothers sister work at Ministry of Commerce

I was advised NOT to buy anything because in September Thai economy will crash.

She was super sure about the month, she was super sure that the prices of houses and condo's will drop by at least 30%

Again, do not shoot the messenger, i am only posting what was told to me.

One of my staff was with me, and in general chat said her hubby wanted to change jobs, accountant insisted he DOES NOT because again come September, there will be no jobs.

Take from it what you will.

konying that is really intriguing. It's not very often that you hear Thai's talking negatively about their economy but particularly a public servant. Are you able to tell us more?

Did she give any reasons such as is it related to the high levels of debt and what is the significance of September?

[thaibeachlovers]

Somebody needs to get over the idea that making the rich poorer would make the poor richer. The 1%ers don't have enough money to share to make the world's 7 billion people prosperous. The only thing that will bring new wealth to the masses is to create new wealth.

We can't all stand around in a circle with our hands in each other's pockets believing we'll all get rich. We have get busy and create new wealth to have more to go around.

Examples of creating new wealth and thus jobs and opportunities for others (and taxes to the government.)

1. Invent a Microsoft that can burn a copy of Windows onto a 10 baht DVD and turn it into a 5,000 baht copy of Windows. In the meantime promote the computer explosion that put the masses online and created countless careers the world over in the hardware and software and internet business.

2. Plant seed and watch a crop grow into new wealth that can be sold or bartered for a computer or tractor and help feed the masses.

3. Be part of the value added process where iron ore is mined, next refined into steel, next shipped, next turned into a brand new car, shipped again, sold by a retail dealer's sales force, and maintained by the service department. Jobs from new wealth abound at every step. Cars get cheaper with productivity until the masses have one.

3. Build a new house creating new wealth in the form of shelter while spending money into many directions in the economy. From the very beginning of the chain this is turning raw materials into new wealth including a home for someone.

4. Be a teacher. Create new wealth in the form of educated people who can go out into the world and be productive. The poorest people in the world are often uneducated.

Each person involved in the chain of creating new wealth is creating a better lifestyle for someone while creating jobs, earning money and paying taxes.

No slackers are invited to this party. Only the people who are willing to get up and go to work will participate in the economy despite the dreams of dreamers.

You do realise that the baby boomer bomb is set to explode soon, eating up all the resources that would otherwise be used to build your brave new world, don't you?

Unless they bring in euthanasia on demand ( I want that option ), you can forget about it.

BTW, the idea that everyone can have a private car is barking. There is already near gridlock in every heavily populated country. I expect people to start killing each other in Thailand soon in road rage incidents.

The only answer is to provide cheap/ free public transport that supports people's needs, and BAN private cars in cities.

[NeverSure]

You do realise that the baby boomer bomb is set to explode soon, eating up all the resources that would otherwise be used to build your brave new world, don't you?

Unless they bring in euthanasia on demand ( I want that option ), you can forget about it.

BTW, the idea that everyone can have a private car is barking. There is already near gridlock in every heavily populated country. I expect people to start killing each other in Thailand soon in road rage incidents.

The only answer is to provide cheap/ free public transport that supports people's needs, and BAN private cars in cities.

I've never met a negative person who was successful. I've met a lot who were whiners who watched the world go by and wondered why they didn't get their quota. "There are two kinds of people in this world: Those who make things happen and those who wonder what happened."

I like the odds for a positive person because at least he has some chance while the negative person has no chance.

If I would listen to negative people I would have shot myself in 1973 when the US went off the gold standard and the president of the bank where I was working told me the dollar would soon crash for good. If I had listened to people like that all of these years I'd be a pauper.

Cheers

[thaibeachlovers]

You do realise that the baby boomer bomb is set to explode soon, eating up all the resources that would otherwise be used to build your brave new world, don't you?

Unless they bring in euthanasia on demand ( I want that option ), you can forget about it.

BTW, the idea that everyone can have a private car is barking. There is already near gridlock in every heavily populated country. I expect people to start killing each other in Thailand soon in road rage incidents.

The only answer is to provide cheap/ free public transport that supports people's needs, and BAN private cars in cities.

I've never met a negative person who was successful. I've met a lot who were whiners who watched the world go by and wondered why they didn't get their quota. "There are two kinds of people in this world: Those who make things happen and those who wonder what happened."

I like the odds for a positive person because at least he has some chance while the negative person has no chance.

If I would listen to negative people I would have shot myself in 1973 when the US went off the gold standard and the president of the bank where I was working told me the dollar would soon crash for good. If I had listened to people like that all of these years I'd be a pauper.

Cheers

I am a negative person ( surprise, surprise ) though I think it's probably more cynicism than pure negativety, yet I have had a very successful life, doing far more than most people ever will. But, I don't consider success to be measured in money. In fact, I think most rich people are losers. Far more important is quality of life as lived, not how many cars one has and having a big house while living life as a sheeple.

Edited June 19, 2015 by thaibeachlovers

[Publicus]

We're already into the Information Age and also the Technology & Cyber Economy, so the right wing slave driver ideologues are going to have to adjust to the reality that, coming soon, not all people will have to work, nor will the economy need a laborforce anything near its historical and traditional ongoing size.

Many people won't be getting a minimum wage, they'll be getting a comfortable sustainability resource of money, or of some medium of exchange, modality to obtain goods and services. It's of some considerable comfort that ideology and dogmas do not have a future in this almost present world.

Not so, mi amigo. It's called productivity. The more the collective produce, the more there is to go around. No one is going to pay for the slacker to enjoy the fruits of the labors and the fruits of the investments of the productive.

If there is all of this automation that would allow many not to work, who would buy the machinery and build the factory to give away the productivity of this factory? The inventor and investor is not going to be motivated to develop these things if he can't charge for and keep the fruits of his labor and investment. Oh and btw, like it or not it is the private, profit motivated sector that invents and creates these modern products that can propel the world forward. Neither socialism nor communism brought us the tech age, the TV, the airliner, the automobile or anything else. Profit motive and individual striving did.

You are actually talking about "just another" 1%er vs another 98%. 1% would own the means of production and 98% would still have to live from it. There are 7 billion people in this world and to lift them out of poverty they would have to be educated and motivated to produce something of value (new wealth) that they could exchange for the value someone else produces

"There ain't no such thing as a free lunch."

Cheers

I'd said the right would go off the deep end yet it really took a flying plunge and splashed deep into the water.

It's not about statism or government ownership of the means of production, transportation, communication. It is about production in an economy that is a radically new Technological and Cyber Economy, as in 3-D copying for example. How many jobs are in that line of production. Nothing necessarily dismisses private enterprise either.

The right ignores democracy. No one is saying the world will eat up representative democratic government in this excellent adventure of the new world order of NINE billion people and counting. I'm rather focused on the USA actually, so let's not run off too far afoot.

I am a capitalist and a democrat who raises these questions, I don't have all of the answers in any respect so I haven't offered any proposition other than to say the right needs to untether itself from its dogmas of the past, to include presumptuous posturing, lecturing, pontificating.

[Asiantravel]

We're already into the Information Age and also the Technology & Cyber Economy, so the right wing slave driver ideologues are going to have to adjust to the reality that, coming soon, not all people will have to work, nor will the economy need a laborforce anything near its historical and traditional ongoing size.

Many people won't be getting a minimum wage, they'll be getting a comfortable sustainability resource of money, or of some medium of exchange, modality to obtain goods and services. It's of some considerable comfort that ideology and dogmas do not have a future in this almost present world.

Not so, mi amigo. It's called productivity. The more the collective produce, the more there is to go around. No one is going to pay for the slacker to enjoy the fruits of the labors and the fruits of the investments of the productive.

If there is all of this automation that would allow many not to work, who would buy the machinery and build the factory to give away the productivity of this factory? The inventor and investor is not going to be motivated to develop these things if he can't charge for and keep the fruits of his labor and investment. Oh and btw, like it or not it is the private, profit motivated sector that invents and creates these modern products that can propel the world forward. Neither socialism nor communism brought us the tech age, the TV, the airliner, the automobile or anything else. Profit motive and individual striving did.

You are actually talking about "just another" 1%er vs another 98%. 1% would own the means of production and 98% would still have to live from it. There are 7 billion people in this world and to lift them out of poverty they would have to be educated and motivated to produce something of value (new wealth) that they could exchange for the value someone else produces

"There ain't no such thing as a free lunch."

Cheers

I'd said the right would go off the deep end yet it really took a flying plunge and splashed deep into the water.

It's not about statism or government ownership of the means of production, transportation, communication. It is about production in an economy that is a radically new Technological and Cyber Economy, as in 3-D copying for example. How many jobs are in that line of production. Nothing necessarily dismisses private enterprise either.

The right ignores democracy. No one is saying the world will eat up representative democratic government in this excellent adventure of the new world order of NINE billion people and counting. I'm rather focused on the USA actually, so let's not run off too far afoot.

I am a capitalist and a democrat who raises these questions, I don't have all of the answers in any respect so I haven't offered any proposition other than to say the right needs to untether itself from its dogmas of the past, to include presumptuous posturing, lecturing, pontificating.

Surely it’s about incentive and a willingness to take risk if you think you are going to be allowed to enjoy the fruits of your labour.

But let’s not forget Obama’s father saw nothing wrong in theory with 100% income taxes

[ggold]

We're already into the Information Age and also the Technology & Cyber Economy, so the right wing slave driver ideologues are going to have to adjust to the reality that, coming soon, not all people will have to work, nor will the economy need a laborforce anything near its historical and traditional ongoing size.

Many people won't be getting a minimum wage, they'll be getting a comfortable sustainability resource of money, or of some medium of exchange, modality to obtain goods and services. It's of some considerable comfort that ideology and dogmas do not have a future in this almost present world.

Not so, mi amigo. It's called productivity. The more the collective produce, the more there is to go around. No one is going to pay for the slacker to enjoy the fruits of the labors and the fruits of the investments of the productive.

If there is all of this automation that would allow many not to work, who would buy the machinery and build the factory to give away the productivity of this factory? The inventor and investor is not going to be motivated to develop these things if he can't charge for and keep the fruits of his labor and investment. Oh and btw, like it or not it is the private, profit motivated sector that invents and creates these modern products that can propel the world forward. Neither socialism nor communism brought us the tech age, the TV, the airliner, the automobile or anything else. Profit motive and individual striving did.

You are actually talking about "just another" 1%er vs another 98%. 1% would own the means of production and 98% would still have to live from it. There are 7 billion people in this world and to lift them out of poverty they would have to be educated and motivated to produce something of value (new wealth) that they could exchange for the value someone else produces

"There ain't no such thing as a free lunch."

Cheers

Don't you think 7 billion people is too many people? As that figure increases the harder it will be. If we live an automated world where humans are taken out of the production chain how are these people going to find a sustainable way of life?

Arguably speaking the more wealth created the worse the planet will become, what you are really talking about is exploitation of the planets resources, A never ending cycle.

The American model of capitalism is the problem, It has been the cause of all global recessions. I'm no lefty but there needs to be more control and not such a cavalier attitude that the $ is all that matters.

The danger is someone will wake up one day and decide there needs to be a war to reduce the number of free lunches!

Edited June 19, 2015 by ggold

[Publicus]

We're already into the Information Age and also the Technology & Cyber Economy, so the right wing slave driver ideologues are going to have to adjust to the reality that, coming soon, not all people will have to work, nor will the economy need a laborforce anything near its historical and traditional ongoing size.

Many people won't be getting a minimum wage, they'll be getting a comfortable sustainability resource of money, or of some medium of exchange, modality to obtain goods and services. It's of some considerable comfort that ideology and dogmas do not have a future in this almost present world.

Not so, mi amigo. It's called productivity. The more the collective produce, the more there is to go around. No one is going to pay for the slacker to enjoy the fruits of the labors and the fruits of the investments of the productive.

If there is all of this automation that would allow many not to work, who would buy the machinery and build the factory to give away the productivity of this factory? The inventor and investor is not going to be motivated to develop these things if he can't charge for and keep the fruits of his labor and investment. Oh and btw, like it or not it is the private, profit motivated sector that invents and creates these modern products that can propel the world forward. Neither socialism nor communism brought us the tech age, the TV, the airliner, the automobile or anything else. Profit motive and individual striving did.

You are actually talking about "just another" 1%er vs another 98%. 1% would own the means of production and 98% would still have to live from it. There are 7 billion people in this world and to lift them out of poverty they would have to be educated and motivated to produce something of value (new wealth) that they could exchange for the value someone else produces

"There ain't no such thing as a free lunch."

Cheers

I'd said the right would go off the deep end yet it really took a flying plunge and splashed deep into the water.

It's not about statism or government ownership of the means of production, transportation, communication. It is about production in an economy that is a radically new Technological and Cyber Economy, as in 3-D copying for example. How many jobs are in that line of production. Nothing necessarily dismisses private enterprise either.

The right ignores democracy. No one is saying the world will eat up representative democratic government in this excellent adventure of the new world order of NINE billion people and counting. I'm rather focused on the USA actually, so let's not run off too far afoot.

I am a capitalist and a democrat who raises these questions, I don't have all of the answers in any respect so I haven't offered any proposition other than to say the right needs to untether itself from its dogmas of the past, to include presumptuous posturing, lecturing, pontificating.

Surely it’s about incentive and a willingness to take risk if you think you are going to be allowed to enjoy the fruits of your labour.

But let’s not forget Obama’s father saw nothing wrong in theory with 100% income taxes

Missing the point completely, which is technology and cybernetics doing a significant volume of the production. Not all of it, the significant amount of it.

Risk and incentives are superfluous, irrelevant, immaterial to the core issue of technology and cybernetics doing the significant quantity and indeed quality of the productive work.

I said the right would be spouting its ideologies and dogmas and that's exactly what we're getting and it completely misses the line of inquiry.

[NeverSure]

the right needs to untether itself from its dogmas of the past, to include presumptuous posturing, lecturing, pontificating.

I have a leftist friend with that as his main hobby, LOL.

Radical left wing wacko nonsense to include presumptuous posturing, lecturing, pontificating is not a new thing for this generation to think it invented, you know. The Soviet Union totally crashed with this "new" nonsense. It had something to do with redistribution of wealth, doncha know. It had something to do with too many government controls, doncha know. It had something to do with a lack of private, for profit, free markets with each entitled to keep what he earned, doncha know. It had something to do with the lack of incentive for the gifted achievers, doncha know.

[MaxYakov]

Now do not shoot the messenger, but was in the meeting with my accountant.

Her mother or mothers sister work at Ministry of Commerce

I was advised NOT to buy anything because in September Thai economy will crash.

She was super sure about the month, she was super sure that the prices of houses and condo's will drop by at least 30%

Again, do not shoot the messenger, i am only posting what was told to me.

One of my staff was with me, and in general chat said her hubby wanted to change jobs, accountant insisted he DOES NOT because again come September, there will be no jobs.

Take from it what you will.

Did they say what was special about September?

You might ask them which stocks to short and get back to us.

[Time Traveller]

How anyone can extract "print money" from the acronym QE is beyond me. QE is "quantitative easing" which has the word easing in it. The Fed eases banks' lending restrictions by allowing them to lend a higher percentage of depositors' money than is normal. The Fed then further eases lending by lowering interest rates.

It's this easing that makes more money available to the economy and that gives it a jump start. It has nothing to do with printing creating more actual money. The good news is that the Fed can later tighten these controls and tighten down on the money supply by increasing bank reserve requirements and increasing interest rates. This obviously takes money out of the system while having nothing to do with actual USD in existence.

OP: That will be another $5 please.

You don't have a clue do you?

Here's the meaning of terms when people use them.

"Print Money" - is not literally creating notes. People use the term to refer to the deliberate process of increasing the money supply which include bank deposits as well as cash. The idea is that more money in circulation will allow debtors to pay back creditors.

"Quantitative Easing" - was jingoistic propoganda to hide what they were doing. Essentially money dilution. Increasing bank accounts would do the trick, it had nothing to do with "easing bank reserve requirements" as you put it.

It was about the Fed buying bonds in the open market. They paid for these bonds by electronically crediting bank accounts and thereby increasing the actual money supply. Before QE began their balance sheet was around $700billion. After QE3 it had expanded to around $4trillion. Effectively pumping money into the financial system to allow banks (the bond sellers) to lend out. In reality, the banks were not lending out their excess reserves so QE (monetary dilution) did not have the expected effect of hyperinflation as many feared..

Edited June 19, 2015 by Time Traveller

[Time Traveller]

The fact is USA’s economy has for so long been heavily reliant on consumer spending (in fact 70% of USA's GDP was based on just spending).

Now 93 million Americans are even not in the labour force ( nearly one third of the population ) and this is the first time ever it has happened. On top of that due to technology, robotics there will never be enough good jobs ever again to sustain the level of consumer spending that America needs to get back where it was.

On top of that when you read 76% of Americans are living paycheck to paycheck with fewer than one in four Americans with enough money in their savings account to cover at least six months of expenses. Most sobering of all is 50% of American households have less than a three-month cushion of emergency savings and 27% had no savings at all.

We're already into the Information Age and also the Technology & Cyber Economy, so the right wing slave driver ideologues are going to have to adjust to the reality that, coming soon, not all people will have to work, nor will the economy need a laborforce anything near its historical and traditional ongoing size.

Many people won't be getting a minimum wage, they'll be getting a comfortable sustainability resource of money, or of some medium of exchange, modality to obtain goods and services. It's of some considerable comfort that ideology and dogmas do not have a future in this almost present world.

they'll be getting a comfortable sustainability resource of money, or of some medium of exchange, modality to obtain goods and services.

Dream on.

I think the Walton family will ensure the poor do get enough food stamps from the government to keep Walmart in business no matter what happens.

[Publicus]

the right needs to untether itself from its dogmas of the past, to include presumptuous posturing, lecturing, pontificating.

I have a leftist friend with that as his main hobby, LOL.

Radical left wing wacko nonsense to include presumptuous posturing, lecturing, pontificating is not a new thing for this generation to think it invented, you know. The Soviet Union totally crashed with this "new" nonsense. It had something to do with redistribution of wealth, doncha know. It had something to do with too many government controls, doncha know. It had something to do with a lack of private, for profit, free markets with each entitled to keep what he earned, doncha know. It had something to do with the lack of incentive for the gifted achievers, doncha know.

Not talking about the Soviet Union which is cheerfully dead and gone, the same fate that awaits the CCP and its PRChina.

Not talking about statism or government ownership and/or control of the means of production, transportation, communication. I'm completely against that.

I am a capitalist private enterpriser who outdoes Joel Goodson and I am an FDR democrat.

If youse guyz can at last now grasp where I'm coming from, talk to me now about the technology and cybernetics economy and society.

My god, right wing brainlock !

[MaxYakov]

We're already into the Information Age and also the Technology & Cyber Economy, so the right wing slave driver ideologues are going to have to adjust to the reality that, coming soon, not all people will have to work, nor will the economy need a laborforce anything near its historical and traditional ongoing size.

Many people won't be getting a minimum wage, they'll be getting a comfortable sustainability resource of money, or of some medium of exchange, modality to obtain goods and services. It's of some considerable comfort that ideology and dogmas do not have a future in this almost present world.

Not so, mi amigo. It's called productivity. The more the collective produce, the more there is to go around. No one is going to pay for the slacker to enjoy the fruits of the labors and the fruits of the investments of the productive.

If there is all of this automation that would allow many not to work, who would buy the machinery and build the factory to give away the productivity of this factory? The inventor and investor is not going to be motivated to develop these things if he can't charge for and keep the fruits of his labor and investment. Oh and btw, like it or not it is the private, profit motivated sector that invents and creates these modern products that can propel the world forward. Neither socialism nor communism brought us the tech age, the TV, the airliner, the automobile or anything else. Profit motive and individual striving did.

You are actually talking about "just another" 1%er vs another 98%. 1% would own the means of production and 98% would still have to live from it. There are 7 billion people in this world and to lift them out of poverty they would have to be educated and motivated to produce something of value (new wealth) that they could exchange for the value someone else produces

"There ain't no such thing as a free lunch."

Cheers

Don't you think 7 billion people is too many people? As that figure increases the harder it will be. If we live an automated world where humans are taken out of the production chain how are these people going to find a sustainable way of life?

Arguably speaking the more wealth created the worse the planet will become, what you are really talking about is exploitation of the planets resources, A never ending cycle.

The American model of capitalism is the problem, It has been the cause of all global recessions. I'm no lefty but there needs to be more control and not such a cavalier attitude that the $ is all that matters.

The danger is someone will wake up one day and decide there needs to be a war to reduce the number of free lunches!

The ignorant, low-IQ masses of the far future will be convinced by propaganda to migrate to the planet Venus in death-trap spaceships.

The Marching Morons - Cyril M Kornbluth, 1951

Oops, it looks like we're already there:

"When Congresswoman Sheila Jackson Lee [D-TX] confuses the 1969 moon landing with the Curiosity rover Mars landing , is anyone really surprised? At least Rep. Jackson Lee doesn’t think that Guam will tip over and capsize if 8,000 Marines are stationed there like Rep. Hank Johnson (D-GA)."

Ref: Frugal Cafe Blog Zone

Edited June 19, 2015 by MaxYakov

[Publicus]

Now do not shoot the messenger, but was in the meeting with my accountant.

Her mother or mothers sister work at Ministry of Commerce

I was advised NOT to buy anything because in September Thai economy will crash.

She was super sure about the month, she was super sure that the prices of houses and condo's will drop by at least 30%

Again, do not shoot the messenger, i am only posting what was told to me.

One of my staff was with me, and in general chat said her hubby wanted to change jobs, accountant insisted he DOES NOT because again come September, there will be no jobs.

Take from it what you will.

Did they say what was special about September?

You might ask them which stocks to short and get back to us.

Careful...

[MaxYakov]

the right needs to untether itself from its dogmas of the past, to include presumptuous posturing, lecturing, pontificating.

I have a leftist friend with that as his main hobby, LOL.

Radical left wing wacko nonsense to include presumptuous posturing, lecturing, pontificating is not a new thing for this generation to think it invented, you know. The Soviet Union totally crashed with this "new" nonsense. It had something to do with redistribution of wealth, doncha know. It had something to do with too many government controls, doncha know. It had something to do with a lack of private, for profit, free markets with each entitled to keep what he earned, doncha know. It had something to do with the lack of incentive for the gifted achievers, doncha know.

Not talking about the Soviet Union which is cheerfully dead and gone, the same fate that awaits the CCP and its PRChina.

Not talking about statism or government ownership and/or control of the means of production, transportation, communication. I'm completely against that.

I am a capitalist private enterpriser who outdoes Joel Goodson and I am an FDR democrat.

If youse guyz can at last now grasp where I'm coming from, talk to me now about the technology and cybernetics economy and society.

My god, right wing brainlock !

Will you invite me to your next Future Enterprisers event, please? Do you take credit cards?

Pardon me! Of course you do, technology and all.

Publicus - there is no substitute.

PS: Please let Rebecca know I'll be there.

Edited June 19, 2015 by MaxYakov

[NeverSure]

How anyone can extract "print money" from the acronym QE is beyond me. QE is "quantitative easing" which has the word easing in it. The Fed eases banks' lending restrictions by allowing them to lend a higher percentage of depositors' money than is normal. The Fed then further eases lending by lowering interest rates.

It's this easing that makes more money available to the economy and that gives it a jump start. It has nothing to do with printing creating more actual money. The good news is that the Fed can later tighten these controls and tighten down on the money supply by increasing bank reserve requirements and increasing interest rates. This obviously takes money out of the system while having nothing to do with actual USD in existence.

OP: That will be another $5 please.

You don't have a clue do you?

Here's the meaning of terms when people use them.

"Print Money" - is not literally creating notes. People use the term to refer to the deliberate process of increasing the money supply which include bank deposits as well as cash. The idea is that more money in circulation will allow debtors to pay back creditors.

"Quantitative Easing" - was jingoistic propoganda to hide what they were doing. Essentially money dilution. Increasing bank accounts would do the trick, it had nothing to do with "easing bank reserve requirements" as you put it.

It was about the Fed buying bonds in the open market. They paid for these bonds by electronically crediting bank accounts and thereby increasing the actual money supply. Before QE began their balance sheet was around $700billion. After QE3 it had expanded to around $4trillion. Effectively pumping money into the financial system to allow banks (the bond sellers) to lend out. In reality, the banks were not lending out their excess reserves so QE (monetary dilution) did not have the expected effect of hyperinflation as many feared..

"You don't have a clue do you? "Print Money" - is not literally creating notes."

Of course I know that but the Fed doesn't in any way actually create more USD in any way for quantitative easing. End of.

You are badly mistaken and probably led astray by the same people who led the OP astray. Money hasn't been diluted by QE.

I get it that this is a common misconception among the masses who've never been a banker or had to deal with reserves and capital requirements and loan to deposit ratios, so let me tell you again.

The Fed "increases the money supply" by allowing banks to lend more. Normally banks can lend only perhaps (depending on the time) about 75% of their depositors' money. This pulls 25% of all cash deposits out of circulation. They aren't being used.

The Fed is the regulatory agency that decides how much of customers' money banks can lend. Overnight they can change that to 90% and free up a lot of money. The money on deposit in banks is part of the money supply that is reported. The money supply consists of M1 and M2 which you are welcome to read about all you'd like. Just google Money Supply. You're looking for M2.

Now with the help of fractional reserve banking, the money supply (M2) is increased to what the Fed wants it to be. If lowering bank capital requirements doesn't do it the Fed goes into the open market and trades in US treasuries, buying them.

The Fed also controls interest rates by varying what it will pay banks for their excess money, or what it will charge them if they need reserve money, at "The Fed Window", daily. If the Fed will pay little or nothing as it has been, banks are motivated to make loans even at lower interest rates, competing hard for good loans.

The good news about this is that no real money was created but rather was made available to the economy from existing money, so by changing policies the Fed can tighten up the money supply and raise interest rates almost immediately and it's all a wash.

Cheers

[Publicus]

the right needs to untether itself from its dogmas of the past, to include presumptuous posturing, lecturing, pontificating.

I have a leftist friend with that as his main hobby, LOL.

Radical left wing wacko nonsense to include presumptuous posturing, lecturing, pontificating is not a new thing for this generation to think it invented, you know. The Soviet Union totally crashed with this "new" nonsense. It had something to do with redistribution of wealth, doncha know. It had something to do with too many government controls, doncha know. It had something to do with a lack of private, for profit, free markets with each entitled to keep what he earned, doncha know. It had something to do with the lack of incentive for the gifted achievers, doncha know.

Not talking about the Soviet Union which is cheerfully dead and gone, the same fate that awaits the CCP and its PRChina.

Not talking about statism or government ownership and/or control of the means of production, transportation, communication. I'm completely against that.

I am a capitalist private enterpriser who outdoes Joel Goodson and I am an FDR democrat.

If youse guyz can at last now grasp where I'm coming from, talk to me now about the technology and cybernetics economy and society.

My god, right wing brainlock !

Will you invite me to your next Future Enterprisers event, please? Do you take credit cards?

Pardon me! Of course you do, technology and all.

Publicus - there is no substitute.

PS: Please let Rebecca know I'll be there.

Becca says to invite my friends but you can come regardless cause Becca wants to introduce you to her aunt in her walker who'll show you her many pussy cats so wear your best knickers.

Regardless of politics there is no substitute indeed yet there are alternatives of all shapes and sizes. I'm forever balancing supply and demand while managing a constant inflation in each.

In fact buy some new knickers.

And don't let me inadvertently close the door on you when you arrive.

[NeverSure]

If youse guyz can at last now grasp where I'm coming from, talk to me now about the technology and cybernetics economy and society.

My god, right wing brainlock !

I hearz wherz youz cominz from and you still don't make senze, you lame brained, far out, left-wing-of-the-chicken

clown car driver.

Go back to the beginning and ask yourself where and how we got all of this technology. Then ask yourself if it will continue to advance if someone takes the profit motive out of it and redistributes it to those fine folks "who don't need to work".

Next ask yourself how, once the point is reached, the always-lazy-looking-for-something-for-nothing left wing nutcases will continue to advance technology to where no one has to work at all.

Who are these lame4-brained leftist idiots who are going to work in high tech with high educations without complaint while they support those at home watching soaps?

I'm sure as hell not going to be one of those who are working if there's this gravy train of yours available. (PS: The dream of this gravy train is what will always sink communism and socialism because we're already overstaffed with people who'd love not to work.)

Idiot. LOL.

[Publicus]

If youse guyz can at last now grasp where I'm coming from, talk to me now about the technology and cybernetics economy and society.

My god, right wing brainlock !

I hearz wherz youz cominz from and you still don't make senze, you lame brained, far out, left-wing-of-the-chicken

clown car driver.

Go back to the beginning and ask yourself where and how we got all of this technology. Then ask yourself if it will continue to advance if someone takes the profit motive out of it and redistributes it to those fine folks "who don't need to work".

Next ask yourself how, once the point is reached, the always-lazy-looking-for-something-for-nothing left wing nutcases will continue to advance technology to where no one has to work at all.

Who are these lame4-brained leftist idiots who are going to work in high tech with high educations without complaint while they support those at home watching soaps?

I'm sure as hell not going to be one of those who are working if there's this gravy train of yours available. (PS: The dream of this gravy train is what will always sink communism and socialism because we're already overstaffed with people who'd love not to work.)

Idiot. LOL.

Right wing brainlock (small lock only required).

Nevermind.

Good night...

[NeverSure]

I hearz wherz youz cominz from and you still don't make senze, you lame brained, far out, left-wing-of-the-chicken

clown car driver.

Go back to the beginning and ask yourself where and how we got all of this technology. Then ask yourself if it will continue to advance if someone takes the profit motive out of it and redistributes it to those fine folks "who don't need to work".

Next ask yourself how, once the point is reached, the always-lazy-looking-for-something-for-nothing left wing nutcases will continue to advance technology to where no one has to work at all.

Who are these lame4-brained leftist idiots who are going to work in high tech with high educations without complaint while they support those at home watching soaps?

I'm sure as hell not going to be one of those who are working if there's this gravy train of yours available. (PS: The dream of this gravy train is what will always sink communism and socialism because we're already overstaffed with people who'd love not to work.)

Idiot. LOL.

Right wing brainlock (small lock only required).

Nevermind.

Good night...

It's so easy to whip a liberal brain on economics because it's made of sawdust.

[Acharn]

"Since the zero-interest policy's launch in 2008, accompanied by massive money printing totalling $4 trillion..."

If that's all the writer understands about Fed monetary policy he should quit and go have a beer. The writer tends to write using common myths and misconceptions that plague others who don't know what's really going on.

The Fed doesn't "print money" to increase the money supply. It doesn't even increase the amount of USD in the world. The Fed increases the money supply by one or all of three ways:

1. It lowers the reserve requirements of banks so that they have a higher percentage of their deposits available to loan. That's the big one that makes more money available to the economy.

2. It lowers interest rates to stimulate that borrowing so that more money is spent into the economy. See "fractional reserve banking".

3. It conducts "open market operations," buying and selling US bonds in the open market. That doesn't increase or decrease total money but rather makes more or less available in the marketplace.

There has been no increase in the total amount of USD in the world other than what is normal to meet any expanding economy or to match inflation of goods and services. The "money supply" increases and decreases only on the books, whichever way the Fed thinks it should go.

That will be $5 please, Mr. Author.

I find this hard to believe. The Fed has not increased the money supply, really? All that printing has been a "paper" exercise? Lowering interest rates to increase spending or simply a message that says to prudently save is bad? It buys bonds, sure it does with what? And whilst we are at it please tell me how the Fed accounts for the Billions of $ that end up being taken out of the country through such activities as drug trafficking?

Now as a simple layman, I am happy to be told I do not understand the system and that my thoughts are just wrong but it seems to me that whilst economic students in university are preached that all is well as long as you can sell bonds then the basis of said economics is off track.

Well, the problem is that the increase in the base money supply has not caused the expected inflation. It's sitting in "excess reserves" at the Fed. Core PCE inflation has remained below the "target" (ceiling) of 2% except for a couple of temporary blips, since 2008. It would be better for the economy if inflation would go up to 3-5% for a couple of years. Although the economy has been sluggishly growing, average wages have not started rising at a pace that should be worrisome. Slightly higher than inflation, but not much -- maybe 50 basis points a year. The hawks on the Fed want to raise rates to stop the unemployment rate from going below 5% -- capitalism requires a large army of unemployed. The unemployment rate actually ticked upward to 5.5% as some people who had given up returned to the labor force, so there's apparently still quite a lot of slack in the labor market.

The bottom line is, until inflation (as measured by "core PCE minus energy and food") gets back up to 2% and average wages start growing at a rate greater than about 3.5% a year, the risks of increasing the Fed overnight rate is just too great. By the way, there's nothing holding banks and companies back from charging higher interest rates if they want to. Also, what the Fed controls is the rate they charge banks to borrow from them.

[Asiantravel]

I hearz wherz youz cominz from and you still don't make senze, you lame brained, far out, left-wing-of-the-chicken

clown car driver.

Go back to the beginning and ask yourself where and how we got all of this technology. Then ask yourself if it will continue to advance if someone takes the profit motive out of it and redistributes it to those fine folks "who don't need to work".

Next ask yourself how, once the point is reached, the always-lazy-looking-for-something-for-nothing left wing nutcases will continue to advance technology to where no one has to work at all.

Who are these lame4-brained leftist idiots who are going to work in high tech with high educations without complaint while they support those at home watching soaps?

I'm sure as hell not going to be one of those who are working if there's this gravy train of yours available. (PS: The dream of this gravy train is what will always sink communism and socialism because we're already overstaffed with people who'd love not to work.)

Idiot. LOL.

Right wing brainlock (small lock only required).

Nevermind.

Good night...

It's so easy to whip a liberal brain on economics because it's made of sawdust.

[Asiantravel]

If youse guyz can at last now grasp where I'm coming from, talk to me now about the technology and cybernetics economy and society.

My god, right wing brainlock !

I hearz wherz youz cominz from and you still don't make senze, you lame brained, far out, left-wing-of-the-chicken

clown car driver.

Go back to the beginning and ask yourself where and how we got all of this technology. Then ask yourself if it will continue to advance if someone takes the profit motive out of it and redistributes it to those fine folks "who don't need to work".

Next ask yourself how, once the point is reached, the always-lazy-looking-for-something-for-nothing left wing nutcases will continue to advance technology to where no one has to work at all.

Who are these lame4-brained leftist idiots who are going to work in high tech with high educations without complaint while they support those at home watching soaps?

I'm sure as hell not going to be one of those who are working if there's this gravy train of yours available. (PS: The dream of this gravy train is what will always sink communism and socialism because we're already overstaffed with people who'd love not to work.)

Idiot. LOL.

" who'd love not to work"

...........and still be able to dine on lobster and sushi

https://www.youtube.com/watch?feature=player_detailpage&v=3PJahyL2yMo

Edited June 20, 2015 by Asiantravel

[Asiantravel]

If youse guyz can at last now grasp where I'm coming from, talk to me now about the technology and cybernetics economy and society.

My god, right wing brainlock !

I hearz wherz youz cominz from and you still don't make senze, you lame brained, far out, left-wing-of-the-chicken

clown car driver.

Go back to the beginning and ask yourself where and how we got all of this technology. Then ask yourself if it will continue to advance if someone takes the profit motive out of it and redistributes it to those fine folks "who don't need to work".

Next ask yourself how, once the point is reached, the always-lazy-looking-for-something-for-nothing left wing nutcases will continue to advance technology to where no one has to work at all.

Who are these lame4-brained leftist idiots who are going to work in high tech with high educations without complaint while they support those at home watching soaps?

I'm sure as hell not going to be one of those who are working if there's this gravy train of yours available. (PS: The dream of this gravy train is what will always sink communism and socialism because we're already overstaffed with people who'd love not to work.)

Idiot. LOL.

Right wing brainlock (small lock only required).

Nevermind.

Good night...

wealth is not found in nature -it has to be created by someone and without it charities would have nothing to distribute. Without business and entrepreneurs no one is going to create the wealth that you people in an Alice in Wonderland state of mind are so keen to distribute.

[Cake Monster]

If Thailand thinks they are in for a rough economical ride in the latter half of 2015, due to the Fed starting to increase rates by a possible 0.5 %, then 2016 will be an absolute meltdown of the Thai economy.

Once the Fed start to increase rates, dispite the talk of slow increases in the interest rates, there will be very little to hold back the momentum as rates will increase quite rapidy.

[Publicus]

The far right eternally misses the point completely, which is my reference to brainlock. The right's hysterical laughter is thus a caricature of itself missing the points I post.

The American technology and cyber economy is structurally putting an increasing number of the laborforce out of jobs permanently. Production is increasingly being done by automation and cybernetics and it is being done by a technological class. The technological class has no ideology of right or left.

It is a paradigm quake by which economics becomes a technical matter, not an ideological or dogmatic pursuit of the left or the right. This is not about left or right, of conservatives or liberals. That is what the right does not get because the right has ideological brainlock reinforced by its teeming dogmas.

The right wing has brainlock in automatically thinking I'm talking Soviet Union stuff, despite the fact I've been absolutely clear I am not. Brainlock on the right precludes any discussion of the emerging cybereconomy occurring in the USA. This has nothing to do with Soviet or Chinese style state planning or statism. I'm not about statism.

I'd pointed out for instance the right fails to discuss democracy or democratic systems relative to a global population in excess of 7 bn people, which is a concern i have and express. More important however is how we preserve and extend democracy in the USA and the West in general as we move into a new economic paradigm of production by automation and cybernetics.

[watso63]

I retired to Thailand aged 49. Never listened to "expert financial advisers" none of who predicted the massive bust in 2008. I was lucky enough to be raised by a skinflint that taught me the true value of money. Never spend more than you earn and never borrow more than you can afford to pay back. I kept my wits about me when it seemed most people were losing theirs. I dabbled briefly in the property market and got out just at the right time. I made more money in 7 years, tax free than I could working for 10 years. Free money. What a joke. I now own outright a house and a condo in Thailand. Oh yeah, I also never kept all my eggs in the same basket. I see the same thing happening here and it's not even based on overpriced housing stock. The average Somchai has developed a liking for bling, but having no real money to speak of has used the only asset he has to borrow against. Land. Whether from the banks, credit companies or loan sharks. New cars and the latest smartphones are expensive, even by western standards but they also depreciate in value and need to be replaced over time. The average wage in Thailand is 13247.89 Thb and has decreased this year. Source http://www.tradingeconomics.com/thailand/wages That is barely enough to live on with no debt and even if a high roller top government worker is raking in 50,000 Thb, with a few sprogs to put through private school and university it's still not enough.

I really couldn't give a stuff about what the private banking shysters in the Fed have to say. They are the most evil corrupt murdering thieves in the world that dominate and dictate both US domestic and foreign policy. Play them at their own game.

Edited June 22, 2015 by watso63

[neeray]

"Since the zero-interest policy's launch in 2008, accompanied by massive money printing totalling $4 trillion..."

If that's all the writer understands about Fed monetary policy he should quit and go have a beer. The writer tends to write using common myths and misconceptions that plague others who don't know what's really going on.

The Fed doesn't "print money" to increase the money supply. It doesn't even increase the amount of USD in the world. The Fed increases the money supply by one or all of three ways:

1. It lowers the reserve requirements of banks so that they have a higher percentage of their deposits available to loan. That's the big one that makes more money available to the economy.

2. It lowers interest rates to stimulate that borrowing so that more money is spent into the economy. See "fractional reserve banking".

3. It conducts "open market operations," buying and selling US bonds in the open market. That doesn't increase or decrease total money but rather makes more or less available in the marketplace.

There has been no increase in the total amount of USD in the world other than what is normal to meet any expanding economy or to match inflation of goods and services. The "money supply" increases and decreases only on the books, whichever way the Fed thinks it should go.

That will be $5 please, Mr. Author.

Thanks for the explanation "Mr. Author". We amateurs need hi-finance explained to us in basic language (or at least I do).

[Asiantravel]

"Since the zero-interest policy's launch in 2008, accompanied by massive money printing totalling $4 trillion..."

If that's all the writer understands about Fed monetary policy he should quit and go have a beer. The writer tends to write using common myths and misconceptions that plague others who don't know what's really going on.

The Fed doesn't "print money" to increase the money supply. It doesn't even increase the amount of USD in the world. The Fed increases the money supply by one or all of three ways:

1. It lowers the reserve requirements of banks so that they have a higher percentage of their deposits available to loan. That's the big one that makes more money available to the economy.

2. It lowers interest rates to stimulate that borrowing so that more money is spent into the economy. See "fractional reserve banking".

3. It conducts "open market operations," buying and selling US bonds in the open market. That doesn't increase or decrease total money but rather makes more or less available in the marketplace.

There has been no increase in the total amount of USD in the world other than what is normal to meet any expanding economy or to match inflation of goods and services. The "money supply" increases and decreases only on the books, whichever way the Fed thinks it should go.

That will be $5 please, Mr. Author.

Thanks for the explanation "Mr. Author". We amateurs need hi-finance explained to us in basic language (or at least I do).

At the same time do bear in mind " Mr Author " was a banker

you know fox guarding the hen house and all that