United States Biden administration policies and actions - megathread

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Bear Ribs

Bear Ribs

Well-known member
bintananth said:
Your repo is my reverse-repo and vice-versa. It's all a matter of perspective and they're effectively the same damn thing.
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Facepalm. We are specifically talking about the Federal Government doing it. Actions taken by the government to alter the supply of money are very much not the same as private transactions.
 
bintananth

bintananth

behind a desk
Bear Ribs said:
Facepalm. We are specifically talking about the Federal Government doing it. Actions taken by the government to alter the supply of money are very much not the same as private transactions.
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The only difference between a repo and a reverse-repo has to do with who is holding the cash and who is holding the piece of paper which says they're going to get that cash at a certain time and date in exchange for the piece of paper. That the government is or is not one of the involved parties does not matter at fucking all.

(There's more to it but I don't feel like writing a dissertation on a Friday evening)
 
Bear Ribs

Bear Ribs

Well-known member
bintananth said:
The only difference between a repo and a reverse-repo has to do with who is holding the cash and who is holding the piece of paper which says they're going to get that cash at a certain time and date in exchange for the piece of paper. That the government is or is not one of the involved parties does not matter at fucking all.
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Yeah... the more to it is your claim that they'd be using reverse repos to deal with lack of liquidity.
bintananth said:
Or lack of liquidity.

Overnight repo's are basically the financial system's sorta-equivalent to the "give-a-penny / take-a-penny" most retailers have to deal with excesses and shortages of small change.
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It matters a heck of a lot because if the government's massively increasing reverse repos, that's only to reduce the money supply and vice versa. Reverse repos will never, ever be used by the government to increase liquidity because reverse repos do the opposite when, and only when, the government is the one doing them. When Steve gives a dollar to Bob, the economy still has a dollar in it. When the government gives a dollar to Bob or takes one from Steve, the total number of dollars in the system changes. Governments playing with how much cash is in the system is entirely different from financial institutions loaning and borrowing money.

You literally quoted this article by @Airedale260 with these quotes in it:

money-market funds, tapped the increasingly popular Fed program, which essentially serves as short-term parking for hordes of cash.

The facility had been met with growing demand since April, as firms look for ways to temporarily invest cash on hand as trillions worth of fiscal and monetary stimulus slosh through the economy.

Essentially, the Fed is keen to reduce cash balances in the banking system

The repo operations soak up some of the excess liquidity currently overwhelming US money market funds, which have been flooded with cash

And somehow your conclusion was that there may not be enough liquid cash in the system. How can you possibly think that?
 
A

Airedale260

Well-known member
Bear Ribs said:
Yeah... the more to it is your claim that they'd be using reverse repos to deal with lack of liquidity.

And somehow your conclusion was that there may not be enough liquid cash in the system. How can you possibly think that?
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I don’t presume to know for certain but I think what @bintananth means is that the repos are only half of this particular feature of the securities markets, and that reverse repos should not be disregarded as they are also a tool for investors. In other words, it’s not a disagreement just pointing out (correctly) that what I talked about was only half of the whole.

I don’t think it’s an inflation/deflation disagreement but rather a filling in of gaps in knowledge.
 
bintananth

bintananth

behind a desk
Airedale260 said:
I don’t presume to know for certain but I think what @bintananth means is that the repos are only half of this particular feature of the securities markets, and that reverse repos should not be disregarded as they are also a tool for investors. In other words, it’s not a disagreement just pointing out (correctly) that what I talked about was only half of the whole.

I don’t think it’s an inflation/deflation disagreement but rather a filling in of gaps in knowledge.
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You correctly understood my intent.
 
xbox432

xbox432

Lover of Editing
Uhm... New here, just signed up, so I just thought I'd say that THIS thread is the one that convinced me to give this site a try. And though most of the things y'all were discussing went over my head, I liked how discussions were handled. Particularly, the fact that when someone was wrong they weren't jumped by others. Either from having outdated info or misremembering something. Nor was someone conceding a point said to be backpedaling.

So, uh, yeah. Thanks for actually having a discourse and not an echo chamber? I probably won't frequent this part of the forums often due to trying to get away from all the shit going on outside, but it does my paranoia good to feel like I'm not gonna get shanked for having an opposing opinion. I'm not usually into politics and stuff, I usually prefer sticking to the Creative Writing Forums. Maybe I'll see some of you there later.
 
A

Airedale260

Well-known member
xbox432 said:
Uhm... New here, just signed up, so I just thought I'd say that THIS thread is the one that convinced me to give this site a try. And though most of the things y'all were discussing went over my head, I liked how discussions were handled. Particularly, the fact that when someone was wrong they weren't jumped by others. Either from having outdated info or misremembering something. Nor was someone conceding a point said to be backpedaling.

So, uh, yeah. Thanks for actually having a discourse and not an echo chamber? I probably won't frequent this part of the forums often due to trying to get away from all the shit going on outside, but it does my paranoia good to feel like I'm not gonna get shanked for having an opposing opinion. I'm not usually into politics and stuff, I usually prefer sticking to the Creative Writing Forums. Maybe I'll see some of you there later.
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Welcome! I will say we do sometimes get rather heated over other disagreements but people can disagree in one thread yet agree in another.

The political stuff generally stays in this part of the forum, but we do have a fair number of writers who have come over here just to set up shop in the CW forums so they don’t have to deal with being harassed over their stories. Make yourself at home!
 
strunkenwhite

strunkenwhite

Well-known member
Chaos Marine said:
I was making a joke about politicians becoming a new kind of royalty where they can do what they want, get a nice plump pay bump but everyone else has to play by the rules. Eh, yeah, probably a bad joke that reaches a bit.
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No problem; I had assumed it was an actual reference, where either "something" used to actually be something specific or it was along the lines of "??? Profit"—thus my confusion.
 
Chaos Marine

Chaos Marine

Well-known member
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