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3/ Note the green line (M2), which has ALWAYS included savings accounts ... and how it doesn't do anything dramatic or unprecedented.pic.twitter.com/G08zzcaGz8
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4/ I typoed the date; my bad. Read the linked blog post and look at the graph which shows the data using the old M1 composition - and note that there's no discontinuity.https://twitter.com/perrymetzger/status/1500125918878175235 …
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5/ Sure, I'll take the graph (and a link to the source, please) if you've got it.https://twitter.com/perrymetzger/status/1500126079641604098 …
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7/ details on the definition of H6, and the large number of changes in the process used to calculate it, here https://www.federalreserve.gov/releases/h6/h6_technical_qa.htm …
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8/ I don't have time to dig through this line by line but a quick perusal shows interesting stuff. One example: H6 "monetary base" includes bank reserves. If you look at the graph from Perry in #6 in this sequence you see one big jump at the end of the 2008 financial crisis >>pic.twitter.com/kbCclRnyOY
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9/ ...right when the regulators demanded that banks increase their reserves. ...so already I see one way that the H6 climbing is not indicative of "printing" (scare quotes bc increasing money supply isn't actually done with paper and ink).
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10/ Anyway, in case it's not clear: * I think the gov is mismanaging the economy * I think the gov is creating money when it shouldn't * I think that this is causing inflation. I just don't think that the supplied graphs prove the [ true! ] claim.pic.twitter.com/u0uKIHZGMs
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11/ "why would it not"? I don't understand the question. M1 is a metric the fed created. It was what it was, and then it changed, so now it is what it is. >>>https://twitter.com/ctdonath/status/1500129618434662401 …
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12/ There are multiple metrics that track different things. M1 != M2 != H6 ...etc. Get the old Trinity diagram up here M1 is money, M2 is money, H6 is money, M1 is not M2 ...
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13/ The reason that different things are measured is that they ARE different things. Money created via fractional reserve banking for mortgages is fairly illiquid and not subject to drastic overnight surges. Money in checking accounts is much more liquid.
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14/ Once upon a time, money in savings accounts was much harder to spend - you'd have to dig your paper passbook out of your desk drawer, put on your overcoat and go downtown to the bank, stand in line, and withdraw savings.pic.twitter.com/ISvunfTHew
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15/ Now you log into your bank website on your phone as you're standing in line at Chipotle and you move $10 from savings to checking in between saying "extra guac" and paying for the burrito. Savings are MUCH more liquid, and function more like the other items in M1.
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16/ I still don't understand the question. In the 1970s, they used to be different, and we measured them differently. Now that savings are just like checking, we added savings to M1, while keeping it in M2. I explained this in tweets #12-15.https://twitter.com/ctdonath/status/1500131584653111300 …
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18/ I strongly agree with this. Indices of all types need small adjustments over time, and in such cases it makes sense to keep the index name ... but HUGE adjustments seem to call for retirement of old index and creation of new.https://twitter.com/Bitcoin_is_/status/1500133143096934401 …
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I can withdraw. Savings gets paltry interest in exchange for rarely withdrawing; checking gets 0% for frequent withdraw. Why measure only one?