MR Theory
Posted: Fri Oct 25, 2013 4:59 pm
Hello all,
New here... but I have read the new PP book, as well as Harry Browne's initial book. I'm 22 years old, working full time as a graphic designer, as well as maintaining a print media business through the internet (making and selling stickers, pins, t-shirts, banners, etc.). It is going fairly well. I got interested in Politics and Economics in 2007 thanks to Ron Paul... I have since gathered most of my knowledge on Economics from the Austrian Perspective, Peter Schiff, Jim Rodgers, Mises Institute, etc ... but even that I don't have a full grasp on. Regardless, most of the information I have been inclined to read has been from people predicting hyperinflation, or a currency crisis. Only recently have I been looking around for alternative approaches in Investing, and I must say that the PP really caught my attention, and I am very inclined to go with this strategy.
I have been reading the posts on here, and you all seem like very intelligent people that I would LOVE to learn from. One thread in particular stood out to me, but it looks like the conversation died out back in July. It was a thread going back and forth between some Austrians who talk of hyperinflation/currency crisis and others were talking about something called Monetary Realism (or something a long those lines?) It was the first I had heard of it. Anyway, I was very interested, and would like to open that discussion back up simply for the knowledge, and for questions I have.
Any suggested reading on this for me? Also... from my understanding of what many of you were saying is that the scenario for hyperinflation isn't very likely because the U.S. is such a productive economy and then when the FED is inducing QE it is merely swapping assets, not creating more money. Correct? I was under the impression that the FED was buying U.S. treasuries with cash or numbers that they made up digitally from Banks, is this correct so far? If it is, then what is stopping the banks from loaning out this money? I realize inflation is not really all that present right now, but if the banks started to lend out this newly created money, wouldn't inflation really start to show up? I have read that, the banks have more excess reserves than they normally do, so that is why we are not seeing inflation, but if they started to loan out these excess reserves, we would see inflation. Is that true? I am curious just because I am not 100% sold on the PP yet, although I am leaning towards it. Being young, and refraining from consumption in order to save while everyone else is out there spending there money really makes my savings very dear to me (even though I am sure it is for everyone.) So I care much about it, and am very open to all theories/ideas.
Just a few questions to get this started... I am rather new to all of this, so while reading your posts, I sometimes grasp a little bit of it, but not all of it
. So I made an account so I could ask questions.
New here... but I have read the new PP book, as well as Harry Browne's initial book. I'm 22 years old, working full time as a graphic designer, as well as maintaining a print media business through the internet (making and selling stickers, pins, t-shirts, banners, etc.). It is going fairly well. I got interested in Politics and Economics in 2007 thanks to Ron Paul... I have since gathered most of my knowledge on Economics from the Austrian Perspective, Peter Schiff, Jim Rodgers, Mises Institute, etc ... but even that I don't have a full grasp on. Regardless, most of the information I have been inclined to read has been from people predicting hyperinflation, or a currency crisis. Only recently have I been looking around for alternative approaches in Investing, and I must say that the PP really caught my attention, and I am very inclined to go with this strategy.
I have been reading the posts on here, and you all seem like very intelligent people that I would LOVE to learn from. One thread in particular stood out to me, but it looks like the conversation died out back in July. It was a thread going back and forth between some Austrians who talk of hyperinflation/currency crisis and others were talking about something called Monetary Realism (or something a long those lines?) It was the first I had heard of it. Anyway, I was very interested, and would like to open that discussion back up simply for the knowledge, and for questions I have.
Any suggested reading on this for me? Also... from my understanding of what many of you were saying is that the scenario for hyperinflation isn't very likely because the U.S. is such a productive economy and then when the FED is inducing QE it is merely swapping assets, not creating more money. Correct? I was under the impression that the FED was buying U.S. treasuries with cash or numbers that they made up digitally from Banks, is this correct so far? If it is, then what is stopping the banks from loaning out this money? I realize inflation is not really all that present right now, but if the banks started to lend out this newly created money, wouldn't inflation really start to show up? I have read that, the banks have more excess reserves than they normally do, so that is why we are not seeing inflation, but if they started to loan out these excess reserves, we would see inflation. Is that true? I am curious just because I am not 100% sold on the PP yet, although I am leaning towards it. Being young, and refraining from consumption in order to save while everyone else is out there spending there money really makes my savings very dear to me (even though I am sure it is for everyone.) So I care much about it, and am very open to all theories/ideas.
Just a few questions to get this started... I am rather new to all of this, so while reading your posts, I sometimes grasp a little bit of it, but not all of it
. So I made an account so I could ask questions.
Mostly in the "Other Discussions" section. Welcome to the forum!