Comments by "Curious Crow" (@CuriousCrow-mp4cx) on "ProfSteveKeen" channel.

  1. No: the vast majority of money in existence is Ledger Money or Bank Credit, amounting to 95% of money in existence at any time. Currency (cash) is about 2%, and Central Bank (government) money 3%. And as such, it is responsive to changes in demand. Inflation is the rate of change in demand for money. And what happens then? Central banks may signal that they want interest rates to increase by raising their base rates, and the private sector may oblige, but they are not obligated to do so. We saw this in the US last year when the Fed cut their base rate, the Fed Funds Rate, and the banks did nothing. The interest rates charged did not shift for consumers. So, who's in the driving seat here? Central banks or the Banks? It isn't the government.
    3
  2. Not many, because if it was that simple everyone would be doing it. There is no hitter in baseball that has hit a home run in every game of their career. Likewise, there is no investor in financial history that has been on the upside of every transaction they have made. Never. Now that's a framing, but how insightful is it? How useful is it? The idea of the game of financial investing is to be right more than being wrong. And what's worse is there are many ways to lose money, than there are to make a profit. And even worse, all those models did diddly squat in 2008. Almost everyone lost money, except those who paid attention to fear and greed in the markets. But modelling alone is not the holy grail.
    2
  3. They way you should look at it is what what I think is correct or incorrect? Just think about this: what is Money? What is the largest type of money in the global financial system? Hint: it's not government money creation or currency. Give up? It's bank credit, bought into existence when banks lend money out, which isn't controlled by government, but by the banks. It is private money supply which is about 95% of money in existence. Currency is about 2%, and Central Bank money only about 3%. So your assertion is based on a mistaken understanding of money creation in the present global financial system. And if you had checked the M1 and M3 measures, you would realise that.
    1