If I owned the Fed or the BOJ my website would be donothingbuttalk.com Or would that be giving away too much?

I think helicopter money, properly defined, is more than QE. After all, QE exchanged bonds for base money. Helicopter money properly applied does not use government bonds or add to government debt. I think Eric Lonergan has the right definition of helicopter money. I would like to see more people embrace that definition, because it is so often misdefined, even by Fed officials.

I totally agree that QE is much more damaging, as we approach negative rates, than is helicopter money. Actually, regarding the Eurozone, even though I don't believe in multiple nation currency, Draghi has instituted helicopter money before any other central bankers, by the TLTRO program.

Interesting article for sure, Bruce. Some say that energy derivatives make up a much smaller market than do interest rate derivatives. So many believe that even if energy derivatives became like the MBS market of 2008, it would not destroy the biggest derivatives market or the collateral, bonds, that secures it.

If you look at the recessions and troubles from 1985 onward, the long bond has declined in yield relentlessly, as bonds are in demand like never before.

Interesting article. The IMF is funny. The idea of living with inflation for awhile is not the story I get from reading St Louis Fed VP Stephen Williamson. He seems happy with a little negativity, and all is well for him when he visited Switzerland. No, the Fed won't allow inflation. Too many bonds used as collateral. They won't admit it, but they have to protect the price of bonds. And clearly, that is shown in their policy since the Great Recession. Nothing else comes close to explaining why they do what they do.

I agree with you Mish, not so durable as to be on the roads. And this Domino Pizza robot will be on footpaths? Will it be on the ones banning skateboards? Where will the rule of law be when you need it?

As far as shifting away from workers, I plan to boycott any company in fast food that I see doing any of this. I will go to companies that employ humans.

Slow growth could make it necessary to get base money into the hands of the people. Tax collection would go up as that money made it way through the economy.

Surely the globalization of the world, something not done by #Obama, contributes to declining wages in America. It isn't Obama that did this, it is the globalist cabal that doesn't care much about the well being of Americans anymore.

I am not a big fan of Obama or any politician right now, but the decline of wages was not his doing. #Trump is not exactly a Republican, so no one really knows if he will hurt #GDP or keep the slow growth engineered by the Fed.

Lol, Carl. I like #Dunkin Donut coffee. Not a big fan of their donuts. Maybe they should make them by hand. These donut shops in Las Vegas are so far superior to Dunkin Donuts $DNKN that it is almost embarrassing: www.reviewjournal.com/.../7-doughnut-shops-check-out-around-town

#Monetarism is almost dead, but helicopter money translates to the real economy. So, getting base money into the hands of the people would work. However, interest rates have to be monitored because so many bonds are being used as collateral. The banks are vulnerable.

#NGDP Targeting would create too much inflation for those bonds being used as collateral if #GDP was low, requiring a lot of inflation. There is a reason why the Fed stopped listening to Scott Sumner. And that is that these clearinghouses were created in order to protect the counterparties, but they use trillions of dollars of bonds. The Fed now has massive demand for bonds that will extend for many, many years, unless the clearinghouses themselves fail. Therefore, NGDP Targeting will not ever be accepted by the #CentralBanks, IMO.

Sumner was right about the Fed ignoring NGDP leading to the Great Recession. But now the Fed has insatiable demand for bonds and is content.

We already experiencing slow growth and a massive unemployment of folks who have quit looking for #jobs. While EGDP is not declining, millennials stand to make less money than previous generations and ultimately GDP as reflected on main street will continue to suffer. There is no guarantee that the cost of eating out will be brought down by automation. Food costs are the main cost of doing business.

If you have self driving cars, electric cars, automated food service, and the like, labor participation rates will drop even more. Here is a Fred Chart showing just that. Of course the participation rate went up when two people had to work to make it. But now, we are declining even while that economic reality is even more acute: https://fred.stlouisfed.org/series/CIVPART