Good Morning, again, Ted and Jody:
As my late Grandpa Reinhardt, would describe it, “It snowed like a SOB (he did not use the acronym and drew out each word to savor each of them. Grandpa Reinhardt was a treat for a child to be around.) last night.” Indeed, we had an accumulation varying from an inch here at the house to three inches near the top of the hill leading down to I-5. Now that the dawn is here, nary a flake is left. We lost our accumulation of snow in the dark. (Is this what thieves in the night do, steal snow?) The parallel in monetary terms, to when someone loses an accumulation of money struck me. This morning I published the following on my democratizemoney.wordpress blog largely as a result of that observation:
A Note on Inflation
The Federal Reserve holds about $300,000,000,000,000 in assets, most of it in debt instruments. Let’s say the voting population of the US is 300,000,000 (It isn’t, it is much smaller). So, that means, if the Federal Reserve sells off its assets when it starts making cash payments to US Voters, it could offset $10,000/citizen of its newly created money in the first year. Indeed, The Federal Reserve could create a situation where it pulls money out of circulation faster than it makes cash payments to citizens. So, the Federal Reserve has the tools to make a transition to a democratized money supply seamless in terms of inflation/deflation measures.
If the Federal Reserve did this, it would in effect be a loss of an accumulation of debt. Unfortunately, unlike snow, there would still remain the debt, only in the hands of someone other than the Federal Reserve. However, if the Feds ever wanted to know what to do with all those assets it uses to back our money, well . . . democratize money creation. However, I suspect taking that much money out of circulation would disrupt the bond markets causing the wealthy and other bond holding folks to also want to sell. At which point the US Treasury cold step in and buy up their own obligations at a fraction of their worth—talk about a manipulation to solve the non-existent US debt problem.
If you think about it, this is more convoluted than the time travel I use in my Amanda stories.
Yesterday morning I got an email from the folks at Faculty Relations at CMU in response to my request to PSC on Friday for a copy of my curriculum vitae. I lost track of the last one from 1998 and the disc drive it was on is long gone. So, that left me “vitaless.” (“Vitaless” is a Twilight Zone for Old Used Paper Graders (AKA academics)) The email contained a copy of the vitae I used in my application to you and the “gang” to be department chair. As I recall, every year we had to send in new, updated, copy of our vitae. Strange that in several decades worth of vitae sent to the administration the only one they have is the first one. Kind of makes one wonder with they did with all the ones after?
We lost our snow. I trust you are more adept at hanging on to snow accumulations
Warmest regards, Ed