Friday, February 9, 2018

Steve's Barking; Contracting of money suppy

The meaning of money. Storage of value. Money supply goes down when loans are called in. At least that what logic tells me. Does that mean the value of money goes up when the stock market goes down, and calls are placed? If that being true and I have no doubt that it is, when the stock market is high the value of money is cheap. The same should be true with the central bank holding of government debt. Now this maybe true in the over all picture but to the average Joe on the street, the value of money is the same or it's become become more valuable. What all this nonsense I've been writing about in the above paragraph is the stock market was inflated because that's were the excess money that the central banks were giving back into the economy was going into the stock market. Didn't inflate cost of housing, transportation, food or clothing. Supply and demand does that

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