Posted by: denk | Jul 7 2023 16:06 utc | 103
Ms Williamson is not going anywhere politically, you have that right, it is mainly that she at least does not parrot the party line all day. Not unlike RFK Jr. Any deviation from the part line gets noticed, and you get no attention. In any case I don’t think a few fresh faces is going to lead to any substantive reform.

Posted by: Bemildred | Jul 7 2023 16:16 utc | 104

denk 103
‘ Biden needs no introduction ‘
He probably does need a daily reminder of his name and job every morning.

Posted by: Giyane | Jul 7 2023 16:25 utc | 106

He probably does need a daily reminder of his name and job every morning.
Posted by: Giyane | Jul 7 2023 16:25 utc | 106
——————
I think most potus are good actors !

Posted by: denk | Jul 7 2023 16:38 utc | 108

108 denk
So that trip on the sandbag was all part of the cynical , sick, clown act of being the Potus that starts WW3 ?
Now there I totally agree with you.

Posted by: Giyane | Jul 7 2023 16:49 utc | 110

Here was a question for me in the last WiR:

@ juliania | Jul 6 2023 4:19 utc | 289 with the Martin Buber passage you indicated in previous comments was for me….thanks
Certainly a good argument against Mammon
Does Martin Buber say anything about human to human relationships? Patriarchy?
I fear that if humanity does not rebalance itself by giving women agency and equity again our species will not evolve much longer.
Posted by: psychohistorian | Jul 6 2023 5:34 utc | 291

Thanks, psychohistorian. Definitely lots about human to human relationships as I and Thou begins with those. I haven’t read a lot of his works on that subject beyond this small work, but as folk on the previous threads have been discussing modern European philosophers, probably much of what Buber is saying here relate to those as well; he was in Germany when he wrote this in 1937, with a postscript he added to my slim paperback edition in 1957 from Jerusalem.
I could be wrong but I don’t think “I and Thou” concerns itself with patriarchy per se. I have his “The Prophetic Faith” — in my dim memory there’s plenty of attention being given there to how prophecy begins historically speaking. Also, his powerful explanations in “Moses – the Revelation and the Covenant” would lead me to believe the term ‘Patriarchy’ to have a different meaning for him than it does in modern language, as it does also in Christianity. Sure, the Apostles are all male, but then there is also Mary Magdalene who first saw the resurrected Christ and is given in Orthodoxy the title “Equal to the Apostles”.
That the Jewish patriarchs are male simply means that there is a division of labor between men and women, practically speaking, but that ‘male and female created He them’ signifies implicit equality, (God of course being ‘himself’ uncreated and so not either one.) Which would be the Christian understanding also, made explicit by Luke in his opening chapters.
I will add that if there had seemed an imbalance before, it is Mary, the Theotokos, birther in flesh of Christ, to whom special prayers are said by Christians who believe she most represents us mere humans in her response to the task set upon us all, which is to fulfill the promise of our own humanity – male or female: Be it unto us according to Thy word. That’s matriarchy and patriarchy, if you want to use those terms. We are or can be all equally human.

Posted by: juliania | Jul 7 2023 17:10 utc | 112

Please tell me : how is « Crimea » pronounced ?
It’s been driving me crazy (crazier).
Everybody pronounces it « Cry-me-ah ».
To me that sounds like « Eye-Rack & Eye-Ran » instead of « Ear-Rock & Ear-Ron », or « Eye-talian & A-Rab ».
IMO Crimea should be pronounced « Crim-Ya », no ?

Posted by: Featherless | Jul 7 2023 17:56 utc | 114

A$$hole Rutte IV Is Gone
Leaving the Netherlands in a great economic and social mess … the worst Dutch PM in my lifetime 1945 on forward. Certainly hope the electorate sees through the blah-blah-blah of the Conservative (Tory) VVD party policy. Using immigration and asylum seekers as breaking point? WTF complete bull$hit of a rightwing fanaticus. You and NATO are fighting a proxy war where tens of thousands innocent people have died and millions have fled the war.
Dutch government in crisis over asylum measures | Politico
BREAKING NEWS:
Live: Cabinet Rutte IV fallen • Coalition parties fail to reach agreement on asylum policy
Tory Conservatives policy: create chaos and rule by decree. Caretaker cabinet will take harsh economic measures …. governing because of war in Ukraine … austerity read all over.
From my writings a few days ago as Biden chose a woman for SG of NATO 😂
<< Rutte Looks for Exit from Dutch Politics >>
Mark failed to impress NATO member states in the campaign for SG as Joe personally appeared to have picked a girl … ehh female, breaking glass ceiling and all that to prevent any discussion on the wisdom of a proxy war with Russia across the Ukraine.

Posted by: Oui | Jul 7 2023 19:02 utc | 116

An excellent offering from New Cold War by the Toronto-based international lawyer and writer, Christopher Black:
The Future of International Criminal Law
https://newcoldwar.org/the-future-of-international-criminal-law/
“…The entire structure of ‘international justice’ since 1946 has become so corrupted that it is difficult to see how it can be transformed into a vehicle to stop aggression as it was intended, instead of a propaganda tool justifying it. The rot has spread everywhere…”

Posted by: John Gilberts | Jul 7 2023 20:30 utc | 118

Exactly … the “migration crisis” has been abated by war refugees … mostly self-created by NATO alliance. The true number of asylum seekers has stabilized at 34,000 each year from pre pandemic level. The rest is VVD party narrative to win votes from Geert Wilders. Shameless
https://twitter.com/VVD/status/1594702450317217795

Posted by: Oui | Jul 7 2023 21:52 utc | 120

Featherless: strictly speaking, the correct pronunciation of “Crimea” is “Krim.” But an acceptable alternative pronunciation is “Russian.”

Posted by: malenkov | Jul 7 2023 23:20 utc | 122

Why would the removal of sulphates in the atmosphere affect whether ships can use high sulphur bunker fuel or not? I just don’t get it?
@ Boy | Jul 8 2023 0:23 utc | 123
Perhaps I’m not fully understanding your difficulty. High-sulphur fuels produce the most pollution, so they’ve been phased out in a number of contexts in order to clean up the air. I grew up in Orange County, CA — not far from Riverside. That sting when you inhale on yellow-horizon days is no fun. Makes it hard for little children to run around. If you’ve ever experienced it, you’ll never forget it.
How else would anyone propose to reduce sulfate pollution, other than by reducing the burning of high-sulfate fuels? We cannot practically snatch pollution back out of the air after dispersal via burning.
Students of AGW have long heard from grandpap James Hansen about a dilemma humankind faces, our “Faustian bargain”: in the course of reducing GHG’s to target long-term warming, we face simultaneous reduction of aerosol emissions, retracting a considerable short-term cooling effect. Nobody ever implied it should be easy to understand this stuff.

Posted by: Aleph_Null | Jul 8 2023 0:47 utc | 124

https://climatereanalyzer.org/clim/t2_daily/
@ oldhippie | Jul 7 2023 13:32 utc | 98
What an amazing, alarming chart to watch this July! Earth’s global mean temperature breaking 17C for the first time, probably, since the Eemian — back before Homo sapiens acquired the second surname — and only getting going as summer and El Niño settle in.
The gap between 2023 and all previous years in this and other key metrics (ocean surface heat, Antarctic sea ice) is symptomatic of multiple systems shifting toward a new equilibrium, up there somewhere.

Posted by: Aleph_Null | Jul 8 2023 1:07 utc | 126

@ Echo Chamber
Fess up, you’re Derek Henry, right? Why the name change?

Posted by: malenkov | Jul 8 2023 1:39 utc | 128

oldhippie: kinda sucks, doesn’t it, to live in a world where you have to be a woke American imperialist to concede the possibility that pollution and climate change (and even COVID) might be real, and that to believe that Donbass lives matter necessarily entails rejecting such notions as, well, most of science . . . you get the idea.
I’d like to think I occupy some middle ground where it’s possible to believe that not all scientists are corrupt, some vaccines are beneficial, and imperialism is evil (and perhaps I shouldn’t even mention my faggotry), but when I look beneath my feet THERE’S NO MIDDLE GROUND.
It really is McWorld versus Jihad, and if you’re in the middle, you’re nobody.

Posted by: malenkov | Jul 8 2023 2:12 utc | 130

Sanctions are a double edged sword as the world will soon learn.
Anyone wondering why Yellen is visiting China?
Tweet…
“China imposes exports restrictions on gallium and germanium, along with their chemical compounds, both used in chip high-tech and chips. According to @USGS, China produces ~98% of the world’s gallium and ~70% of germanium.US imported ~$265 million worth of the two metals”.
“…The market price of germanium is currently ~US$2,450/kg and gallium is ~US$230/kg, compared to vanadium (V2O5) at US$16.60/kg, copper at US$8.25/kg and zinc at US$2.41/kg,…”

Posted by: Paul GV | Jul 8 2023 3:26 utc | 132

I apologize if I’ve somehow offended anyone, especially b, whom I hold in high esteem. I’ve only told the truth as I see it. Cheers and peace on this bedraggled planet

Posted by: Immaculate deception | Jul 8 2023 3:38 utc | 134

With Erdogan, he is already taking so much aggressive responses from the West I wonder why he doesn’t just take the move. Ego and the mirage of his “greater Turkey” clouding his judgement? Modi is at an earlier phase of this conundrum.
Posted by: Roger | Jul 6 2023 21:20 utc | 31
With Erdogan publicly supporting Ukraine’s admittance to NATO, does it become clear which way he’s jumping? Modi aside, if one takes Jaishankar’s pronouncements seriously, it does seem that India is doing more of an ‘independent foreign policy’… Bhadrakumar takes a critical line about India’s petulance at the SCO, and it’s clear which way he wants India to jump, but it doesn’t appear that India is in a hurry. That border dispute with China seems fairly intractable for now, and it’s not just the Modi/BJP dominant side of the spectrum that is hawkish on it. And China equally so, with good historical justification.

Posted by: Deeplurker | Jul 8 2023 5:25 utc | 136

The dollar, and by extension the euro, is like Marlboro cigarettes twenty years ago: business is good, but the customers want to quit, and those that don’t are dying.

Posted by: Passerby | Jul 8 2023 8:54 utc | 138

Posted by: Bemildred | Jul 7 2023 13:31 utc | 97
It’s no brainer really when you think about it. The main reason people turn against it is because of the tax payer money myth. People have been fooled to believe their taxes would have to rise to pay for it. Why of course the tax payer money myth was created in the first place. To prevent social change and allow unelected technocratic central banks and commercial banks, to be the allocater of both skills and real resources, who favour the upper class and rent seekers.
The right should actually support the job guarentee for a number of reasons.
1. It keeps aggregate demand at a constant level and puts money into the pockets of more people to spend on goods and services. Imagine if a job guarentee was in place in 2008. Those that lost their jobs on a Friday due to the financial crises could have walked into a living wage job on the Monday morning.
2. Business slashes jobs as they become more productive. A job guarentee allows the people to be sacked to pick up a living wage job straight away. Allows these human beings to learn more and different skills in the job guarentee that makes them more attractive to other private sector employers. It gives the private sector a bigger pool of workers to hire from rather than hiring from the unemployed or long term unemployed. Thus the economy becomes more productive as the private sector turns to machinery and nobody needs to worry about unemployment because there won’t be any ravishing through communities.
3. The right shout about competition all of the time and say it drives down prices. Well with the job guarentee the government sets the price and let’s it float. Competition does the rest, as business has to compete for Labour for the first time in 60 years under the job guarentee.
4. It is imperative that the monopolies and competition authority and regulators are given some teeth. So when monopolies form they are immediately broken up. So business that thrived on cheap labour either compete or die. More businesses have to be allowed to die to get rid of the dead wood. Those who can compete flourish. Business is there to produce, now is the time they should be treated like cattle instead of pets.
5. Surely right wing voters would prefer their local communities to be less pay day lenders and charity shops and more consumer choice. Rather than complaining that people are sitting playing the play station and drinking all day or selling drugs. Surely they would prefer to see them in their communities performing public purpose and cleaning up the local areas. Giving them skills allowing them to move up into better paid work.
It has improved a local area in Austria big time. Where they have introduced it at the moment as a trial run.
https://moneyontheleft.org/2023/03/01/gramatneusiedls-job-guarantee-w-thomas-schwab/
But right wing voters and business owners ALWAYS vote to slash government budget deficits. As they have been fooled to think government finances are a profit and loss sheet like their own household and business balance sheets.
Slashing budget deficits reduce household savings. Reduces the asset side of the balance sheet. What is used by households to buy goods and services from right wing voters. So what can you do. These people vote against their own consumers because of gold standard, fixed exchange rate thinking. So it will take a long time before these fools realise the job guarentee is good for them.

Posted by: Echo Chamber | Jul 8 2023 12:15 utc | 140

From Canada – British humour alert.
From the Beaverton, satirical news site:
Toronto in chaos as combination Condo/A&W/Weed Stores gain sentience, overrun city
https://twitter.com/TheBeaverton/status/1677437337356193795
Monstrous inflatable obstacle course comes to Saskatoon [that’d be a city in prairie province of Saskatchewan]
https://globalnews.ca/news/9818759/inflatable-obstacle-course-saskatoon/
Canadian cybersecurity agency and FBI issue advisory over rising ‘Truebot’ cyber attacks
https://www.ctvnews.ca/sci-tech/canadian-cybersecurity-agency-and-fbi-issue-advisory-over-rising-truebot-cyber-attacks-1.6471754
2 bears hit a trampoline near Vancouver [videoclips included, including from The National’s Moment – scroll down for that one]
https://www.cbc.ca/news/canada/british-columbia/bears-trampoline-video-coquitlam-1.6899578

Posted by: Bruised Northerner | Jul 8 2023 13:54 utc | 142

Posted by: Bemildred | Jul 7 2023 3:58 utc | 64
“I don’t see he gets into “value” so much as economics of the art world.”
I saw that as precisely the point; the only value that matters (in the art world) is the economic value.

Posted by: horseguards | Jul 8 2023 14:04 utc | 144

Joe Lauria’s summary of continuing Prigozhin issues might be of interest to you…
https://consortiumnews.com/2023/07/07/prigozhins-war/
Evidently nobody knows where he is, at the moment.

Posted by: Aleph_Null | Jul 8 2023 14:24 utc | 146

Why would Vladimir Putin extend the grain deal ? Because he would have no other trump card to play. All of ties with the western bloc had been severed. Narendra Modi said to Vladimir Putin that he would be on Washington’s side. Chinese government claimed to make amends with the western bloc. Russian elites are alone and would’ve to obey to Recep Tayyip Erdogan.

Posted by: Ahmet Akdeniz | Jul 8 2023 15:12 utc | 148

I rather doubt Erdogan has forgotten America’s effort to kill him. That sort of thing has a tendency to stick in a person’s mind and color their decisions for a while. Let’s try and avoid hysteria over minor events and look at larger trends instead.

Posted by: William Gruff | Jul 8 2023 15:30 utc | 150

@ oldhippie | Jul 8 2023 1:51 utc | 129
“A sudden jump of 0.31 degrees is really a big deal. “
Once the methane blows as warm waters infiltrate the Arctic Ocean areas we will all be yours truly. In the meantime we carry on the best we know how, some doing better than others.
Yours truly,

Posted by: suzan | Jul 8 2023 16:31 utc | 152

Very influential columnist at the tied at the hip with the MIC, and the Democratic party, the New York Times, Maureen Dowd, imo just provided a plausible reason for Democrats to bail on President Joe Biden, and then let the polling numbers say he can’t run to get re-elected. I abide by “the four paragraph rule”, so I’m picking two blocks of words by Dowd from near the end of her column.
https://www.nytimes.com/2023/07/08/opinion/hunter-biden-child.html

Opinion
Maureen Dowd
It’s Seven Grandkids, Mr. President
July 8, 2023, 7:00 a.m. ET
………………………………………………………………..
My sister and I often disagree about politics, but this is not a political issue to us. It’s a human one. Joe Biden’s mantra has always been that “the absolute most important thing is your family.” It is the heart of his political narrative. Empathy, born of family tragedies, has been his stock in trade. Callously scarring Navy’s life, just as it gets started, undercuts that. As Katie Rogers, a Times White House correspondent, wrote in a haunting front-page piece last weekend about Hunter’s unwanted child, Biden is so sensitive “that only the president’s most senior advisers talk to him about his son.” Rogers said that “in strategy meetings in recent years, aides have been told that the Bidens have six, not seven, grandchildren.” Jill Biden dedicated her 2020 children’s book to the six grandchildren.
What the Navy story reveals is how dated and inauthentic the 80-year-old president’s view of family is.
Once you could get away with using terms like “out of wedlock” and pretend that children born outside marriage didn’t exist or were somehow shameful. But now we have become vastly more accepting of nontraditional families. We live in an Ancestry.com world, where people are searching out their birth parents and trying to find relatives they didn’t know they had.
……………………………………………………………………….
The president’s cold shoulder — and heart — is counter to every message he has sent for decades, and it’s out of sync with the America he wants to continue to lead.

P.S. A couple of Democrats in Congress spoke out against the deployment of cluster munitions in Ukraine. I’m nursing hope that America is turning the corner on regaining some sanity. Lindsay Graham nearly getting booed off stage in his own state by his own voters was also cause for hope.

Posted by: Babel-17 | Jul 8 2023 18:57 utc | 154

suzan @ 152
Methane clathrates are definitely a possible route to a quick resolution. It has happened before so it can happen again. Last time it happened there was no one around to monitor the small details. Right now relatively little direct observation is occurring. So there is really no way to know if the big methane eruption starts this afternoon or if it waits until other events have made it a moot point.
Doesn’t matter. There are lots of available routes and all go same direction. There was very little slack in the system. 0.31 takes away a big chunk of what slack there was. Every time inertial stability is looking good something like this happens. Could be we just saw tipping point zero in real time.

Posted by: oldhippie | Jul 8 2023 21:02 utc | 156

Could be we just saw tipping point zero in real time.
@ oldhippie | Jul 8 2023 21:02 utc | 156
Regarding “tipping point zero”: Earth’s Energy Imbalance (EEI) is the most basic metric of relevant physics. Around 300 W/m2 (Watts per square meter) of brilliant sunlight streams down, while only 299 W/m2 (0.3%) of longwave radiation escapes back out to space, through the mesh of GHGs.
That rate of energy retention has doubled — from 0.5 to 1.0 W/m2, over the past decade. This is real-world measurement, not model data, from things like a network of ARGO floats to take ocean temperatures:
Satellite and Ocean Data Reveal Marked Increase in Earth’s Heating Rate
https://agupubs.onlinelibrary.wiley.com/doi/10.1029/2021GL093047
EEI is like the fire under the pan, and we keep turning it up. It’s not a matter of if the water in the pan starts boiling away, only when.

Posted by: Aleph_Null | Jul 8 2023 23:36 utc | 158

I just have to post this delight from the Alex Krainer link in my #159 post above:

Thankfully for France, the problem disappeared as suddenly as it had appeared. Before dawn on 29 February 2004 Luis Moreno, that same US “diplomat” who helped bring Aristide to power in 2000, came to his residence flanked with security officials and demanded Aristide’s resignation. Mr. and Mrs. Aristide were simply abducted and flown out of the country on a US-chartered plane back into exile. Haiti’s new, western-backed leader, Gerard Latortue dropped the restitution demands and the whole messy affair was closed.
Even though Jean Bertrand Aristide had been in power since the beginning of 2001, his calls for reparations came more than two years later, seemingly out of nowhere, but soon after France’s snub to the US over the Iraq invasion. Aristide demanded reparations from France, but never from the United States which had occupied it, or held it in debt bondage since 1915, subjecting it to equally rapacious exploitation.
Even before military occupation, in December 1914, US Marines landed in Haiti’s capital, Port-Au-Prince, broke into Haiti’s National Bank and simply took some $500,000 worth of gold belonging to Haiti’s government. Within days, Haiti’s gold was in the vaults of New York banks. Still, Aristide apparently made no precise calculation of damages inflicted on Haiti by the United States.
Furthermore, in an email exchange between Aristide’s government legal counsel Ira Kurzban, and their international law advisor Gunther Handl, the latter advised Kurzban that “Haiti must convey to France,” that there are suitable opportunities “for washing France’s dirty laundry in public.” It’s almost as though the affair was about pressuring and embarrassing France rather than securing justice for Haiti.
That notion is confirmed by the simple fact that France’s problem disappeared only after US agents removed Aristide from power, rather than after earnest negotiations with Haiti’s representatives and France’s acceptance of some obligation to Haiti. This fact alone suggests that France yielded to the United States in some backroom deal, not to Haiti. Perhaps France dropped its challenge to the New American Century and its full-spectrum dominance, and pledged her allegiance to the hegemon.
In 1966 under President Charles de Gaulle, France removed all her troops from NATO’s integrated military command and asked all non-French NATO troops to leave France. In 2009, only a few years after the Haiti affair (plus the destabilizing 2005 riots for a good measure), France once more became a full-fledged member of the North Atlantic alliance. But everyone did not live happily ever after and the relations with France remained difficult.

Note that feature of the USA governing scumbags – theft of bullion. Consistent! Perhaps the Biden Crime Family has a slab or two after the recent caper in Ukraine when he was VPres for Obummer.
More pertinent right now is the desperate USA machinations to maintain NATO solidarity. I guess the rats are becoming uneasy and disturbed and re-reading that recent Russian proposal of December 2021.
I guess a review of Marine LePen statements is in order to see how vocal she is these days in opposing the USA imposition of cowering vassalage on France. Or will this entire rebellion caper make a hero of Micron? :/

Posted by: uncle tungsten | Jul 9 2023 9:52 utc | 160

Russian embassy land approved by Australian Traditional Owners.

Indigenous Aboriginal Elders grant permission for Russian Embassy land use in defiance of Albanese’s ban!
⚡️An official indigenous statement was made today at the Aboriginal Centre in Redfern granting permission for the Russian Embassy in Canberra to use the land in Yarralumla near Parliament House.
⚡️Tribal delegates from Murrawarri, Wudjari, Torres Strait & Budjiti people declared their permission for the Russian Embassy to use the Yarralumla site in defiance of Prime Minister Albanese’s decision to confiscate the land from Russia citing National Security concerns.
⚡️The indigenous delegates lead by Aunty Glenda Merritt and Uncle Bruce Shillingsworth refferred to allodial title held over Canberra by the Ngambri elder Uncle Shane Mortimer as the basis for indigenous permission to the Russian Embassy to use the Yarralumla site.
⚡️The Albanese government has introduced emergency legislation to prevent Russia from competing the construction of its new embassy site less than a kilometre from Parliament House in Canberra.
😡Albo wants a voice to Parliament – well here it is. Respect the decision of the indigenous elders Albo – this is their real, organic, grass-roots voice to Parliament! Hands off the Russian Embassy!

source:https://t.me/two_majors/9297
Well done comrades.
What a laughing stock this Albanese Government has become. Vassals without equal and that includes Haiti.

Posted by: uncle tungsten | Jul 9 2023 11:08 utc | 162

Posted by: bobzibub | Jul 9 2023 3:17
“How does the government provide the funds to the primary dealers to buy the debt ?”
First of all don’t think about it as Money and debt ! Debt is ” base money “.
There are many different types of monetary instruments and they all have different properties. Some you can use in a vending machine, some you can use in the financial markets, some pay interest, some don’t pay interest but they are decentralised and anonymous. These are ALL government liabilities all of which are guaranteed at nominal face value. Backed by the federal government in full faith and credit.Which one of those monetary instruments you choose to ISSUE has more to do with for example how many quarters you want to issue v’s $20 bills.
If one monetary interest pays interest and the other doesn’t that is the completely wrong distinction to make. You find yourself in a silly situation that You could have reserves paying 0% interest and call that money but then have reserves paying 2.5% and call that debt. Or US treasuries paying 0% interest call that money and US treasuries paying 4% interest and call that debt. When the reality is reserves are reserves and US treasuries are treasuries. The type of monetary instruments they are has not changed.
Say you have a 3 month treasury Bill and a coin both paying 0% interest. What is the difference to the economy if the FED issues a 3 month Bill and rolls it over for ever or a coin held indefinitely. There’s no difference. So what type of monetary instruments you ISSUE really matters. Let me explain why that is.
The amount of US treasuries issued by the US government is a joint decision made by both the treasury and the FED. The treasury has the discretion ex anti and the FED has discretion ex post. So in simple terms what the US treasury starts the FED finishes.
So if the FED decided they want more 30 year bonds in circulation it has 2 options.
1. The FED can sell 30 year bonds that It owns.
2. Ask the US Treasury to issue more 30 year bonds.
So if the treasury only issued 30 year bonds and done nothing else. Then the FED the day after the treasury issued them choose to replace half of the bonds with cash. Then that is exactly the same as if the treasury issued only cash then the very next day the FED replaced half of the cash issued with 30 year bonds.
This is a crucial understanding. It doesn’t matter what monetary instruments the treasury decided to issue to fund its spending. What really matters is what monetary instruments the FED decided to leave in the monetary system after the treasury spending. From a monetary policy perspective if the FED wants more bonds in the system and less reserves. Or less reserves and more bonds It will simply do that transaction. By swapping the monetary instruments into what it wants. The amount of US treasuries in the economy the FED is monitoring on a daily basis.
So here is the real kicker ….
Say the US treasury has been monitoring its spending for a month. Next week it needs another $20 billion in its treasury account so that it doesn’t end up with a zero balance. The Treasury tells the FED it is going to issue $20 billion treasury bonds next month.
The FED says hang on a minute we have a pretty nice balance between reserves and treasuries at the moment. We would like to keep the balance of reserves and bonds the way it is. As it helps us to hit our overnight interest rate target.
The FED says to the treasury if you sell those $20 billion treasuries it will take $20 billions worth of reserves out of the system as the reserves are swapped for the treasuries. So what we the FED are going to do is, an hour before the auction is we are going to buy up $ 20 billion worth of US treasuries that are in circulation in the private sector. So that the private sector now has an additional $20 billion worth of new reserve balances.
The FED might have even done it as a repo as the private sector the primary dealers might have liked what balance of reserves and bonds they already had. So the FED gave the primary dealers a little sugar on top an extra basis point of interest here and there.
So now when the treasury auction happens the FED has just given the primary dealers an hour before the auction an extra $ 20 billion in reserves. So that they can buy the $ 20 billion of US treasuries the treasury is wanting to issue.
a) So the Primary dealers buy the US treasuries and now the treasury has $20 billion in its account.
b) The FED provided the funds to the primary dealers so they could purchase the treasuries.
So now the treasury spends the $20 billion into the economy. Which immediately creates an extra $ 20 billion worth of reserve balances.
So the FED now goes back to the original repo deal with the primary dealers and reverses it and does a reverse repo and buys back the $ 20 billion of US treasuries and thus removes the $ 20 billion excess reserves that the treasury spending created.
So what just happened ?
The US treasury got the $20 billion it wanted. The FED got the balance of reserves and bonds It wanted as nothing changed to make it easier to hit its overnight interest rate. The primary dealers were the middle man that earned all the sugar on top. The primary dealers portfolios remain unchanged.
$20 billion was created out of thin air for the treasury. The primary dealers were given the funds by the FED. De dollarisation will help BRICS but won’t harm America that much as there is always somebody to buy the US Treasuries. The FED provides the funds if it wants to.

Posted by: Echo Chamber | Jul 9 2023 11:47 utc | 164

The devil will be in the detail of the new BRICS currency and don’t worry those that know how money works will be all over it like a rash when it is finally released. Highlighting its strengths and weaknesses.
If done right it will be good for countries trying to break free from foreign debt. However, as shown above it isn’t going to bring down America like many people suggest. So don’t get your hopes up.
It is imperative that BRICS understand why gold pegs always ultimately fail.
http://www.bondeconomics.com/2015/01/what-are-government-promises-worth-gold.html
China who does know how money works will be all over that.

Posted by: Echo Chamber | Jul 9 2023 12:14 utc | 166

Barflies,
Echo Chamber = Derek Henry
Tell – promoting “Granny Bonds” among other items
LOL

Posted by: Exile | Jul 9 2023 13:04 utc | 168

@Arch Bungle in the Ukraine thread
Sorry, if I don’t understand correctly, but nothing you quoted pertains to the topic of Chinese-Vietnamese war in 1979

Posted by: Membrum Virile | Jul 10 2023 21:57 utc | 170