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The entire message as received here has been appended, so you may be able to obtain the IP address of the actual sender's site and communicate with the site administrator about the problem. -------------------------------------------------------- -jd=1061321138|69.24.236.24 -------------------------------------------------------- | From [EMAIL PROTECTED] Tue Aug 19 15:25:32 2003 | Return-Path: <[EMAIL PROTECTED]> | X-Original-To: [EMAIL PROTECTED] | Received: from out004.tpctex.com (out004.tpctex.com [69.24.236.24]) | by mail1.panix.com (Postfix) with SMTP id B76384878E | for <[EMAIL PROTECTED]>; Tue, 19 Aug 2003 15:25:31 -0400 (EDT) | Received: (qmail 10673 invoked by uid 0); 19 Aug 2003 19:25:26 -0000 | Received: from unknown (HELO lycos.com) (209.202.220.150) | by inmta008.topica.com.topica.com with SMTP; 19 Aug 2003 19:25:26 -0000 | Received: from Unknown/Local ([?.?.?.?]) by mailcity.com; Tue, 19 Aug 2003 19:25:16 -0000 | Mime-Version: 1.0 | X-Sent-Mail: on | X-Mailer: MailCity Service | X-Priority: 3 | X-Sender-Ip: 67.74.128.89 | Organization: Lycos Mail (http://www.mail.lycos.com:80) | Content-Type: text/plain; charset=us-ascii | Content-Language: en | Content-Transfer-Encoding: 7bit | To: [EMAIL PROTECTED], [EMAIL PROTECTED], | [EMAIL PROTECTED], "Wray, Randall" <[EMAIL PROTECTED]> | From: [EMAIL PROTECTED] | Subject: RE: [SOCIAL CREDIT] still on Question 2 | Date: Tue, 19 Aug 2003 12:25:16 -0700 | Message-ID: <[EMAIL PROTECTED]> | Errors-To: <[EMAIL PROTECTED]> | Reply-To: [EMAIL PROTECTED] | X-Topica-Id: <1061321126.inmta008.topica.com.20699.1320825> | List-Help: <http://topica.com/lists/[EMAIL PROTECTED]/> | List-Unsubscribe: <mailto:[EMAIL PROTECTED]> | tests=CLICK_BELOW,NO_REAL_NAME,RCVD_IN_BONDEDSENDER, | RCVD_IN_OSIRUSOFT_COM | version=2.54 | | Date: Tue, 19 Aug 2003 09:18:05 -0500 | From: "Wray, Randall" <[EMAIL PROTECTED]> | Subject: RE: still on Question 2 | To: <[EMAIL PROTECTED]>, | <[EMAIL PROTECTED]>, | <[EMAIL PROTECTED]>, | <[EMAIL PROTECTED]> | | bill | you still are not getting it. | the fed and treas adopt operating procedures to | ensure: | a) treas hits $5b balance at the end of each day | b) fed hits overnight rate target almost moment-by- | moment | c) treas checks never bounce | d) treas can always spend up to amt authorized by | legislature (regardless of tax revenue) | | all else is boring acctg and politics. | randy | ------------------------- | | Reply: | | a, b, c, and d are undisputed. What remains open for | discussion is the spin put on them. Nothing about | these facts is inconsistent with the standard spin | that: | | a) treas hits $5b balance at the end of each day | *BECAUSE* Treasury deposits sufficient funds from its | commercial bank accounts daily to maintain the | balance in covering the checks that it writes during | the day. | | b) fed hits overnight rate target almost moment-by- | moment *BECAUSE* it has the monopoly determining | reserves through open market operations. To force | the rate downward, it sells securities. To force it | upwards, it purchases securities (mostly derivatives | like "repos" and "swaps"). It "fine tunes" through | tremendous churning so its target is hit almost | "moment-by-moment." | | c) treas checks never bounce *BECAUSE* just like you | or me, it makes sufficient deposits (from tax | collections and securities auctions) to cover them. | | d) treas can always spend up to amt authorized by | legislature (regardless of tax revenue) *BECAUSE* any | shortfall in tax revenue is covered by selling | securities. | | It is indeed politics, or still was until the | retirement of Wright Patman and Henry Gonzales. It | was the matter of intense conflict during the | nineteenth century. The question is (or was so long | as bona fide politicians still discussed it): Where | is the locus of power; is it with the banking | fraternity, or the elected representatives of the | people? | | You avoid the question by aggregating the balance | sheets of the Treasury with the Fed, and speak as if | the question doesn't matter. | | It can be answered by observing what actually | happens. | | Treasury covers the checks it writes almost dollar- | for-dollar from tax collections and security | auctions. | | Whether it should or shouldn't is an entirely | different question. | | To my knowledge, the only time there was significant | deviation from this practice (at any rate since the | beginning of the last century) was during WWII. | | The Fed announced (privately) that it would support | the war effort and make available any and all funds | needed to further that effort. Treasury delivered | special issue low coupon bonds directly to the Fed in | any amount that Treasury wanted to deliver, and | Treasury's account was correspondingly credited. The | private commercial banks were required to subscribe | to an equivalent quantity of low coupon bonds | directly from Treasury, also bypassing the ordinary | markets. Transactions were continued in the ordinary | markets to "keep up appearances." This technique to | finance the war was kept secret from the nation's | enemies (and also from Patman's committee), which | restricted themselves to orthodox techniques to their | disadvantage. | | In terms of finance, the most orthodox of all the | belligerents was Germany . Britain was possibly | slightly less orthodox than Germany. Japan's was | similar to Germany in that it supplemented orthodox | finance with plunder. (Russia was off the chart | since it was purely a non-market command economy.) | | The effect of requiring the commercial banks to | subscribe to securities equivalent to those | subscribed to by the Fed was to lock up reserves | accumulating from deficit spending during the war | that could have otherwise fueled inflation. As they | "matured" and were redeemed post war, reserves were | thereby gradually released into the system, not only | foreclosing the possibility of post-war depression, | but sustaining continued prosperity and American | dominance for decades. | | | | --------- Original Message --------- | | DATE: Tue, 19 Aug 2003 09:18:05 | From: "Wray, Randall" <[EMAIL PROTECTED]> | To: <[EMAIL PROTECTED]>,<[EMAIL PROTECTED]>,<[EMAIL PROTECTED]>,<[EMAIL PROTECTED]> | Cc: | | >bill | >you still are not getting it. | >the fed and treas adopt operating procedures to ensure: | >a) treas hits $5b balance at the end of each day | >b) fed hits overnight rate target almost moment-by-moment | >c) treas checks never bounce | >d) treas can always spend up to amt authorized by legislature (regardless of tax revenue) | > | >all else is boring acctg and politics. | >randy | > | | | | ____________________________________________________________ | Get advanced SPAM filtering on Webmail or POP Mail ... 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