tag:blogger.com,1999:blog-6276561747841568697.post4192522831704078469..comments2024-03-27T05:23:48.855-04:00Comments on Krugman-in-Wonderland: Japan Steps in ItWilliam L. Andersonhttp://www.blogger.com/profile/01802990642236807359noreply@blogger.comBlogger41125tag:blogger.com,1999:blog-6276561747841568697.post-50453900545076575882013-02-01T15:08:27.210-05:002013-02-01T15:08:27.210-05:00BARCLAYS
Registered No – 1026167
Registered offic...BARCLAYS<br />Registered No – 1026167 <br />Registered office <br />1 Churchill Place, <br />London E14 5HP. <br />barclaysloan@admin.in.th<br /><br />Barclays is a trading name of Barclays Bank PLC and its subsidiaries. Barclays Bank PLC is registered in England and authorized and regulated by the Financial Services Authority (FSA No. 122702). We’re one of the largest financial services providers in the world, Also we engage in reAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-6276561747841568697.post-32280298630930048812013-01-17T10:07:31.713-05:002013-01-17T10:07:31.713-05:00correction -ample potential suppliers
What makes ...<i>correction -ample potential suppliers</i><br /><br />What makes the difference between a potential supplier and an actual supplier? Well, as the price rises, more suppliers step up to the plate, hence an upward sloping supply curve.<br /><br />I think you guys are going to search hard to find a horizontal supply curve. The only one I can think of is software, music, movies, etc (once you have produced your first DVD, each extra copy is very cheap after that). Even with those things, they start discounting pretty quickly after they sense the market has hit saturation. A movie will be released in the cinema and then go to DVD when cinema sales drop off. It is bombs at the cinema it goes to DVD real quick.Telhttp://lnx-bsp.net/noreply@blogger.comtag:blogger.com,1999:blog-6276561747841568697.post-66292363371405211602013-01-17T08:25:13.025-05:002013-01-17T08:25:13.025-05:00more potential credit rather than actual custome...more potential credit rather than actual customers doesn't meen more actual bricks used Dineronoreply@blogger.comtag:blogger.com,1999:blog-6276561747841568697.post-17246770773752149062013-01-17T07:38:55.475-05:002013-01-17T07:38:55.475-05:00correction
-ample potential supplierscorrection<br /><br /> -ample potential suppliersDineronoreply@blogger.comtag:blogger.com,1999:blog-6276561747841568697.post-22765501866237652212013-01-17T05:27:09.866-05:002013-01-17T05:27:09.866-05:00Tel -
Demand doesn't increase price when th...<br /><br /> Tel -<br /> Demand doesn't increase price when there is ample suppliers- But I concir with your point that what consitutes an idle resource is not defined by LK. Dineronoreply@blogger.comtag:blogger.com,1999:blog-6276561747841568697.post-74738436900168825072013-01-16T20:25:55.546-05:002013-01-16T20:25:55.546-05:00There's your documented Cantillon effect by th...There's your documented Cantillon effect by the way:<br /><br /><i>The rising cost of tuition has been largely blamed on the federal and state governments because they subsidize student loans. This has allowed educational institutions from exorbitantly increasing tuition costs because students have access to such large sums of money from the taxpayers.<br /><br />Vice President Joe Biden agreed that the federal government is to blame for skyrocketing tuition costs, but said in the same breath that Washington will still continue to offer student aid – since 1978, the cost of college tuition in the U.S. has soared by 900 percent.</i><br /><br /><br />http://economiccollapsenews.com/2013/01/16/student-loan-delinquency-rate-now-higher-than-all-other-consumer-loans/<br />Telhttp://lnx-bsp.net/noreply@blogger.comtag:blogger.com,1999:blog-6276561747841568697.post-65915940058569940332013-01-16T20:12:00.949-05:002013-01-16T20:12:00.949-05:00LK, you are trying to claim that a small pile of h...LK, you are trying to claim that a small pile of handmade bricks in <b>Cambodia</b> of all places (photo from some random year, without context) somehow represents an argument? You don't know whether they are stockpiling inventory or filling back orders there, or just operating under instructions from central planning.<br /><br />Besides that, the existence of warehouses and stores does not magically cause the process of supply and demand to cease operation. Inventory exists only for the purpose of load levelling -- so if a large order comes at short notice, the business can fill the order, rather than turning a customer away. Business has incentive to keep their inventory at the smallest size that still fills orders, because storing excess inventory costs money.<br /><br />If you had ever had even brief exposure to how real world business operates you would understand this.<br /><br />If you believe that commodity prices are fixed irrespective of demand, maybe you want to explain why lumber prices dropped off rapidly when the housing industry ground to a halt in 2009 and then lumber prices came back up in 2013 as the building industry has started moving again?Telhttp://lnx-bsp.net/noreply@blogger.comtag:blogger.com,1999:blog-6276561747841568697.post-49149561714017180092013-01-16T12:16:32.372-05:002013-01-16T12:16:32.372-05:00Bob,
Thanks for the LK lead. This part
"If ...Bob,<br /><br />Thanks for the LK lead. This part<br /><br />"If the price of houses is rising sharply, the law of demand tells us that demand should fall."<br /><br />was especially hilarious. That ignoramus is worth it just for the laughs.Balanoreply@blogger.comtag:blogger.com,1999:blog-6276561747841568697.post-15023871961589511762013-01-16T04:44:33.039-05:002013-01-16T04:44:33.039-05:00Tel@January 15, 2013 at 5:07 PM
"Let's ...Tel@January 15, 2013 at 5:07 PM <br /><br /><i>"Let's suppose some investor wants to build a factory and this requires one million bricks. The bricks must come from somewhere, someone has to make those. You think there is this great pile of bricks just sitting there already, waiting idle for someone to start building"</i><br /><br />Correct. We call them business inventories:<br /><br />http://www.photostocksource.com/enlarge-160307031-piles-of-brick-inventory-trapeang-veng-kampong-thom-cambodia.php<br /><br />And secondly, commodities like bricks are not generally auctioned off. They lie in stocks and are sold to the person who buys them.<br /><br />Lord Keyneshttps://www.blogger.com/profile/06556863604205200159noreply@blogger.comtag:blogger.com,1999:blog-6276561747841568697.post-7384743574033272082013-01-16T02:33:32.454-05:002013-01-16T02:33:32.454-05:00The shop keepers credit issue is not constrained b...<i>The shop keepers credit issue is not constrained by goods as the goods don't have a price untill the transaction is made...</i><br /><br />Sure it's not strictly constrained to a number, but the buyer and the seller are still going to engage in some bargaining and for the most part there's a limit to how much extra someone will pay for the benefit of credit as opposed to just paying cash.<br /><br />At any rate, if some sucker pays ten times the going rate for an item on credit, the money still can't enter general circulation, because there was no actual money. The retailer still has to sit and wait to get paid, and the mark still has to go earn the money to pay for the overprices goods. Late payment offers some elasticity in the whole monetary structure, but the banks can loop the same money round and round again, because they are never encumbered by dealing with real goods.<br />Telhttp://lnx-bsp.net/noreply@blogger.comtag:blogger.com,1999:blog-6276561747841568697.post-2562797173006216242013-01-16T02:26:16.501-05:002013-01-16T02:26:16.501-05:00In the case of bricks prices are not likely to be ...<i>In the case of bricks prices are not likely to be inflated by demand...</i><br /><br />Bricks embody energy, so does lumber or any heavy building material because of transport and processing.<br /><br />So you are telling me the supply curve is horizontal in the energy markets?<br />Telhttp://lnx-bsp.net/noreply@blogger.comtag:blogger.com,1999:blog-6276561747841568697.post-88572044439946714532013-01-15T21:56:11.588-05:002013-01-15T21:56:11.588-05:00Lord Keynes is apparently desperately seeking to b...Lord Keynes is apparently desperately seeking to be declared King of the Cement Heads. People buy more and more expensive housing during a housing boom because they believe that the eventual price increase in those houses will far exceed their debt in a few years and the huge resale price will make the purchase of the house better than cost free. This does not violate "the law of demand". Of course, the pricing of the real estate is distorted by Keynesian fiat funny money dilution, something LK does not and/or will not understand. <br /><br />LK pontificates:<br /><br /><i>[H]ow do speculative bubbles ever emerge and develop in economies? If the price of houses is rising sharply, the law of demand tells us that demand should fall. People will substitute some other good for expensive houses. But that is not what happens during speculative bubbles: the demand for houses increases, and increases sharply, even as prices soar. In fact, the rising prices are clearly a causal factor in the increased demand, because the increase in value, and the desire make money, is what attracts people.</i><br /><br />http://socialdemocracy21stcentury.blogspot.com/2013/01/is-law-of-demand-really-universal.htmlBob Roddishttps://www.blogger.com/profile/17263804608074597937noreply@blogger.comtag:blogger.com,1999:blog-6276561747841568697.post-40321305491200573902013-01-15T19:37:57.805-05:002013-01-15T19:37:57.805-05:00As for central banks debasing currency by papering...As for central banks debasing currency by papering over defaults, well I don't think they do that. Yes they provide bridging loans to help liquidity problems but in the case of an actual insolvancy then that is that.<br /><br />Bearings<br /><br />Lehmans<br /><br />Northern RockDineronoreply@blogger.comtag:blogger.com,1999:blog-6276561747841568697.post-45513635422373712632013-01-15T18:41:55.646-05:002013-01-15T18:41:55.646-05:00The shop keepers credit issue is not constrained b... The shop keepers credit issue is not constrained by goods as the goods don't have a price untill the transaction is made, and that price will include the demand that the credit enables. The same as bank credit. The bank is an intemediary between seller and buyer.Dineronoreply@blogger.comtag:blogger.com,1999:blog-6276561747841568697.post-21580934051624477702013-01-15T18:21:45.147-05:002013-01-15T18:21:45.147-05:00- Tel
In the case of bricks prices are not like...- Tel<br /><br /> In the case of bricks prices are not likely to be inflated by demand as there is competition between brick producers, unless brick production is uncharacteristically moribund. Dineronoreply@blogger.comtag:blogger.com,1999:blog-6276561747841568697.post-37700058809319927652013-01-15T18:15:17.829-05:002013-01-15T18:15:17.829-05:00Dinero: Shops can issue credit its not unique char...<b>Dinero:</b> <i>Shops can issue credit its not unique characteristic of Banks.</i><br /><br />Shops can issue credit, against their existing material stock of goods, by selling the goods with a delayed payment. They cannot issue more credit than they have goods, so the total credit is constrained. This is very important, because banks are not constrained in this way. The backstop for shop credit is physical material goods.<br /><br />More than that, with a shop issuing credit, it is very well understood that the shop is taking onboard the risk of non-payment. In comparison, the bank actually takes risks on behalf of the depositors, but tells the depositors that there is no risk because the central bank covers it. In reality there is no backstop -- central banks cannot print material wealth.Telhttp://lnx-bsp.net/noreply@blogger.comtag:blogger.com,1999:blog-6276561747841568697.post-53364384545678404272013-01-15T17:07:36.456-05:002013-01-15T17:07:36.456-05:00LK: Only if we were to live in a world with no idl...<b>LK:</b> <i>Only if we were to live in a world with no idle resources, no unemployment and no goods available via international trade would this argument work.</i><br /><br />How do you measure those idle resources? Should we all go to you for instruction on which resources are idle and which are not? Is there some wise old man somewhere in the civil service who checks these things?<br /><br />The concept that a Cantillon effect can sometimes happen and sometimes not happen is laughable.<br /><br />Let's suppose some investor wants to build a factory and this requires one million bricks. The bricks must come from somewhere, someone has to make those. You think there is this great pile of bricks just sitting there already, waiting idle for someone to start building, but what actually happens is physical resources and commodities go one sale continuously to the highest bidder. <br /><br />What the credit does is allow our factory builder to outbid everyone else, so the same brick that went into the factory wall, did <b>not</b> go into any other project. Creating credit merely allows the diversion of resources, it does not create wealth.<br /><br />The physical universe <b>never allows credit</b>, you cannot borrow a bicycle out of the vacuum and then ride it to work, then return it later. You can only borrow a bicycle from another human who already has a bicycle.<br /><br />In practice, it is worse than that, because government invariably favours the politically connected, so available credit is not equally distributed amongst all comers.Telhttp://lnx-bsp.net/noreply@blogger.comtag:blogger.com,1999:blog-6276561747841568697.post-13124760992639851342013-01-15T13:43:44.882-05:002013-01-15T13:43:44.882-05:00Correction - 19th centuryCorrection - 19th centuryDineronoreply@blogger.comtag:blogger.com,1999:blog-6276561747841568697.post-53393121308368513162013-01-15T13:42:10.866-05:002013-01-15T13:42:10.866-05:00Financial intitutions don't need savers in ore...Financial intitutions don't need savers in oreder to be able to issue Cedit. <br /> Credit card companies don't have any savers do they.<br /> Commercial banks can re-finance from the central bank at any time. In the 18th centuy commercial banks didn't require the Central Bank to issue credit- they did it themselves.<br /> Shops can issue credit its not unique characteristic of Banks.<br /> The money will be there to repay the credit as it was put into the economy by the original act of spending of the loan.Dineronoreply@blogger.comtag:blogger.com,1999:blog-6276561747841568697.post-89451912230675709062013-01-15T13:28:29.546-05:002013-01-15T13:28:29.546-05:00"....credit allows capital goods investment a..."....credit allows capital goods investment and high real output and employment." What do you mean by "credit"? Central bank "credit" which creates phony capital out of thin air? Phony capital will only create phony investments, which collapse once the actors figure out that the wealth needed to sustain the investments doesn't actually exist.<br /><br />Real credit is created by a prior act of saving; i.e. of foregoing current consumption for the sake of future investment. Central bank pump priming, with it's regime of phony interest rates, discourages the very saving that is necessary to create credit in the first place.Dennisnoreply@blogger.comtag:blogger.com,1999:blog-6276561747841568697.post-26781006383390202812013-01-15T11:33:00.541-05:002013-01-15T11:33:00.541-05:00As the GDP measure includes government spending is...As the GDP measure includes government spending is not a tautology that it rises when government spendsDineronoreply@blogger.comtag:blogger.com,1999:blog-6276561747841568697.post-50805842090031257012013-01-15T10:37:57.894-05:002013-01-15T10:37:57.894-05:00Really? The Japanese economy would have fallen int...Really? The Japanese economy would have fallen into the deepest depression since the Great Depression just because of a lack of what you even term as inadequate stimulus? Anthony Limahttps://www.blogger.com/profile/15923530382897881718noreply@blogger.comtag:blogger.com,1999:blog-6276561747841568697.post-38399006532882175862013-01-15T10:30:33.319-05:002013-01-15T10:30:33.319-05:00At least the GDP growth recovered with stimulus ap...At least the GDP growth recovered with stimulus application!Anthony Limahttps://www.blogger.com/profile/15923530382897881718noreply@blogger.comtag:blogger.com,1999:blog-6276561747841568697.post-73155841534728982642013-01-15T09:39:10.146-05:002013-01-15T09:39:10.146-05:00There is always credit available if borrowers want...There is always credit available if borrowers want it.The borrowers sentiment determines the amount of credit outsatanding. Commercial banks can re-finance from the central bank at any time.<br /><br /> The amount of goods in the economy is not fixed. Entrepreneurial borrowing creates more.Dineronoreply@blogger.comtag:blogger.com,1999:blog-6276561747841568697.post-31394686453430434782013-01-15T08:56:59.009-05:002013-01-15T08:56:59.009-05:00"More credit sounds like a good thing, but cr...<i>"More credit sounds like a good thing, but creating money does not create wealth, so the extra credit merely acts as a wealth transfer mechanism via Cantillon effects."</i><br /><br />That is patent nonsense, given that credit allows capital goods investment and high real output and employment.<br /><br />Only if we were to live in a world with no idle resources, no unemployment and no goods available via international trade would this argument work.<br /><br />We do not; and your argument is worthless.<br /><br />As for Cantillon effects, any private sector credit money creation or capital account inflows also induce these.<br /><br />Cantillon effects do not cripple economies nor do they have the significance Austrians think they do.<br /><br />You have also misunderstood Steve Keen's "QE for debtors".<br /><br />In fact, that plan would help debtors <i>and protect creditors from loss</i>.Lord Keyneshttps://www.blogger.com/profile/06556863604205200159noreply@blogger.com