Warren Mosler: twitterren eztabaida

(https://twitter.com/wbmosler/status/1180200546482950150)

Lyn Alden@LynAldenContact

urr. 4

Due to term loans and overnight repo cycling, the Federal Reserve balance sheet is up $175B in 3 weeks.

Irudia

ivar laegreid@trader8CTA

urr. 4

QE4 is here…

Lyn Alden@LynAldenContact

urr. 4

Yep, now that they are stacking term loans through October, it’s becoming pseudo-QE4. Balance sheet will keep going up and then at some point they’ll call it organic balance sheet expansion or something, and make it permanent.

Warren B. Mosler #MMT@wbmosler

@LynAldenContact

eta

@trader8CTA

Purely ‘technical’ to manage the policy rate under current institutional structure- no ‘macro economic’ consequences

2019 urr. 4

(…)

urr. 5

Repo would demonstrably be much higher sans Fed repo program, which would have severe macro consequences before long

oooooooooooooo

(https://twitter.com/wbmosler/status/1180525568263102466)

Luke Gromen@LukeGromen

Fed extending temporary repo program for another 4 weeks. I’m reminded that Nixon also temporarily closed the gold window.

New York Fed@NewYorkFed

We will continue to offer daily overnight repos for an aggregate amount of at least $75 billion each through Monday, Nov 4, 2019. → https://nyfed.org/358HCvN

Warren B. Mosler #MMT@wbmosler

It’s called offsetting operating factors. It’s purely technical. Get over it!!!

Luke Gromen@LukeGromen

Offsetting operating factors” = “financing US deficits through the banking system/money markets.” Re: “Getting over it”, I’m not angry – this has been baked in the cake for a long time and I’m positioned accordingly.

Warren B. Mosler #MMT@wbmosler

Operating factors are about ‘bank clearing,’ not ‘financing US deficits’, and yes, there are better ways to do it! Details here: https://federalreserve.gov/releases/h41/current/h41.htm

Luke Gromen@LukeGromen

If banks need clearing bc they’re bumping up against liquidity constraints due to UST purchases (that they’re required to make at UST auctions), then what you’re describing are semantics, no?

Warren B. Mosler #MMT@wbmosler

@LukeGromen

Message me to discuss thanks

2019 urr. 5

oooooooooooooooooo

(https://twitter.com/wbmosler/status/1180804068299722758)

Warren B. Mosler #MMT@wbmosler

urr. 5

It’s called offsetting operating factors. It’s purely technical. Get over it!!!

(…)

Warren B. Mosler #MMT@wbmosler

urr. 5

Operating factors are about ‘bank clearing,’ not ‘financing US deficits’, and yes, there are better ways to do it! Details here: https://federalreserve.gov/releases/h41/current/h41.htm

Sovereign Currency@paythepeople

I respect Warren and have read many papers related to credit creation and “MMT,” but bank clearing also includes “financing” deficits. I understand it is a technical process necessary to meet the federal reserve mandates.

Warren B. Mosler #MMT@wbmosler

@paythepeople

eta

@LukeGromen

Semantics. Bank clearing is about the transfer of funds between banks in a multi bank model. Financing deficits refers to Treasury activities which can take place even in a single bank model.

2019 urr. 6

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