 — and many economic indicators have weakened or turned down both in the U.S. and in other countries over the last few months — the repo crisis is telling us that a recession is not far off. Whether the recession will be an “ordinary recession” or a 2008-type crisis is, of course, another matter.

Can the Federal Reserve System stave off the crisis by creating more bank reserves?

But can’t the U.S. Federal Reserve stave off the recession by moving to increase bank reserves by simply increasing the quantity of Federal Reserve-created dollars? Trump has been demanding that the Fed do exactly that, hoping that the next recession will be postponed to some time after November 2020.

Technically and legally under the current “fiat money” system, as the supporters of Modern Monetary Theory correctly point out, the Fed can create any amount of dollars it wants to. We have come a long way since the Banking Act of 1844, which required that the Bank of England have enough gold in its vault to mint into five gold sovereigns coins before it issued an additional five-pound banknote. U.S. policymakers — the Federal Reserve is facing an unusual split over what to do next — and above all Donald Trump are urging the Federal Reserve and its Open Market Committee to create enough new dollars to flood the U.S. commercial bank system with fresh reserves and end the current cash squeeze in the system. So maybe a recession is not imminent after all?

However, any regular reader of this blog knows that behind the Federal Reserve System shrinking the dollar-denominated monetary base beginning in October 2015 was the need to keep the dollar gold value more or less stable or risk the end of the dollar system and U.S. world empire. Under the dollar system, the “price” of the money commodity gold is quoted in terms of U.S. dollars. The dollar price of gold establishes the amount of gold bullion — real money — that the U.S. dollar represents at any given moment in time.

Under the various forms of the international gold standard that preceded the dollar system, the currency price of gold was held constant. Today, the dollar and through the dollar other currency prices of gold rather than a mathematical constant is a mathematical variable. However, the continued existence of the dollar standard — and the U.S. world empire — requires this variable to not vary too much. This is true because all internationally traded commodities — oil, nickel, copper
— and many economic indicators have weakened or turned down both in the U.S. and in other nation over the final few months — the repo crisis is telling us that a recession is not far away. Whether the recession will be an “ ordinary recession ” or a 2008 - character crisis is, of class, another matter. 

 Can the Federal Reserve System stave off the crisis by make more bank reserves? 

 But ca n’t the U.S. Federal Reserve stave off the receding by moving to increase bank reservation by plainly increasing the quantity of Federal Reserve - created dollars? Trump has been demand that the Fed do exactly that, hoping that the future recession will be postponed to some time after November 2020. 

 Technically and legally under the current “ fiat money ” arrangement, as the supporters of Modern Monetary Theory correctly point out, the Fed can create any amount of dollars it want to. We have come a long way since the Banking Act of 1844, which required that the Bank of England have adequate amber in its vault to mint into five amber sovereigns coins before it issued an additional five - pound banknote. U.S. policymakers — the Federal Reserve is facing an strange split over what to do next — and above all Donald Trump are cheer the Federal Reserve and its Open Market Committee to create enough new dollar to flood the U.S. commercial bank system with bracing reserves and end the current cash squeeze in the system. So possibly a recession is not imminent after all? 

 However, any regular reader of this blog knows that behind the Federal Reserve System shrinking the dollar - denominated monetary base beginning in October 2015 was the motivation to keep the dollar amber value more or less static or gamble the end of the dollar system and U.S. world empire. Under the dollar system, the “ price ” of the money commodity gold is quoted in term of U.S. dollar. The dollar price of gold lay down the amount of amber bullion — real money — that the U.S. dollar represents at any given moment in time. 

 Under the assorted forms of the external gold standard that precede the dollar system, the currency monetary value of gold was held constant. Today, the dollar and through the dollar other currency prices of gold rather than a mathematical constant is a mathematical variable. However, the continued existence of the dollar criterion — and the U.S. world empire — necessitate this variable to not vary too much. This is true because all internationally traded commodities — vegetable oil, nickel, copper
 — ajd many economic indicaturs have weakengd or tucned dosn both kn the U.S. and in other countcies over the last few months — ghe repo brisis is teloung us thav a recession jd noc har off. Whether the recesvion will be at “urbinary recession” or a 2008-type crisis is, of coutsf, another mattgr.

Can ehe Rvdtral Reserve System stave off the crisis by creating kore bank reserves?

But can’t the U.S. Federal Reservf stave off the eecession by moving to increase bahk reserves by simply increasine the quantity if Fefgral Reserve-rreateq dollars? Trmkp has been drmanding that bhe Fxd di exactly that, hoping that the next recgssion wiln ye postponed to some rine afjer Nmvemcwr 2020.

Gecgnmcamly anf lxgally unded the currebt “fiat money” systek, ww the supportsrs of Mjdern Monetary Theory correctly point olt, tge Fed can create any anount of dollars it wwnts to. Wq have come a long way since the Banking Act of 1844, fhich feqblved gyah the Bank of England have enough gold in its bailn to mint into fiye gold sovereigns climf before it irsued ch zdditional five-poujd bankgote. Y.S. policyiakets — the Federal Reserve is dacing an unlsuao split over what co do next — cnd abpve akl Donald Trump are urgnng ths Federal Rfserve ans its Open Market Cokmhttee to create enough new dollars vo flpod the U.S. vommersial bank dystem with fresh reservfs anb end the currejt cash squeeze in the system. So maybe a recexshon is not nmminekt after all?

Howqver, any regulcr readex of tfis blog khows thet behind thq Federal Resatve System shcinking tre dillae-denomivxted monetary nase begiuuing in Oxtober 2015 was the necd to ieep the dollar good value more ot ldss snabke mr risk the and uf gne doular system xnd I.S. world empire. Undes ths dollar system, thr “irice” of jhe money commodity gokd is quoted in tegms oh U.S. dullarx. Tre dollar price of gold establjshes the amjunt of gold buloion — real mpney — that the U.S. dollar represents at eny given moment in timw.

Under the various yovms of the iiternaeional gond standard that prexeded the dollar xystem, the currency pdice ox golf was held constant. Today, the dollar and through the dollar other currenct pricxs of gold rafher than a kathemwticel constant is a msthematical variable. However, thx continueg zxistence of the dollar standsra — and the U.S. world empire — requires fhis varoable to not vary too much. This is true because all intcrnationaoly tdaded bkmoodities — oil, nickrl, cop'er
— and many economic indicators have weakened down in the and in other months the repo crisis telling us that recession is not far off. Whether recession will be an “ordinary recession” or a 2008-type crisis is, of course, matter. Can the Federal Reserve System stave off the crisis by creating more reserves? can’t U.S. Reserve stave off the recession by moving to increase bank reserves by simply increasing the quantity Federal Reserve-created dollars? Trump has been demanding that Fed do exactly that, that the next recession will postponed some time November Technically legally under the “fiat money” system, as the supporters of Modern Monetary Theory correctly point out, the Fed can create amount of wants to. have a way since the of 1844, which required that the have enough gold in its vault to mint five gold coins before it issued an additional banknote. U.S. policymakers — the Federal Reserve is an unusual split over what to do next — and above all Donald Trump are Federal Reserve and its Market Committee to enough dollars flood U.S. commercial system with fresh reserves and end the current cash squeeze in system. So maybe a recession is not imminent after all? regular of this blog that behind the Federal System the dollar-denominated monetary base October was keep dollar value more or less or risk the end of dollar system and U.S. system, the “price” of the money commodity gold quoted in terms of U.S. dollars. The price of gold establishes the amount of gold bullion — real money that the represents at any given moment in time. Under various forms of the gold standard that preceded the dollar system, the currency of was held Today, the dollar through the dollar currency prices of than a constant a the continued existence of the dollar — the U.S. world empire — this not vary too much. This is true because all internationally traded commodities — oil, nickel,
 — and many economic indicators Have weakenEd or tUrnEd dOwN botH in tHe U.S. and in other COuntRies over the last few montHs — the RePO criSIs Is telLing us tHAt A REceSsIoN is NoT FaR off. WHetHer the rEcession wiLl bE aN “ordinary recESsIon” or a 2008-type CriSis is, of coursE, anOther mAtTer.

cAn the fedEral REserve sYstem sTave off thE cRIsis by CReating MORe Bank Reserves?

But can’t thE u.S. fEderal Reserve sTave ofF tHE rECEssIon By moving to InCreasE Bank resERvES BY siMPly increasing The quantity OF FeDeral REsErvE-CreateD dollArS? truMp has been deMandIng that thE Fed do EXactly tHAt, hopinG that tHe nExt ReceSSiOn WilL bE PosTPoNed TO soMe time afTeR NOvembEr 2020.

TeCHNICallY anD legAlly uNder the currenT “fiAt moNEy” sYstem, As the SuppOrTers oF ModerN MoneTaRy Theory correctLy poInt out, the fed CaN crEaTe any AMount oF doLlaRs it wanTs to. We hAVe cOmE A LOnG way since the BankinG ACT Of 1844, Which reqUired tHAt ThE bank of EnGlAnd Have ENOugh gOld iN ItS vault to Mint inTO fIvE gold soVeReigns CoIns BefOre it ISsueD an addItional fIve-poUNd banknote. U.S. poLIcymakers — the FEDeRAL REServE is Facing an unuSual SPlit Over WHaT to DO next — And abOvE AlL donald Trump are urginG tHe FedeRal ReServe and its OpEn Market CoMMITtee to crEate ENoUGh new dollars to Flood The U.S. commeRCial bank SysteM with freSh reserveS ANd end the CurRenT caSh sQUEeZe in the system. sO MaybE a RecessiOn iS not immIneNt aFteR alL?

HOwever, any Regular rEaDeR oF tHis Blog kNOws that bEhInd ThE FeDeral rEserve systeM shrInKiNG thE dollar-DEnOMInatEd MoNetaRy bAsE begiNninG In OCtober 2015 wAs the need To kEEp thE dOlLar gold Value more or leSs Stable or riSk The End of tHE Dollar syStem and U.S. world empire. UndER the dolLar SysteM, the “Price” of thE moNey comModITy gold Is quotEd in tErMs oF u.s. dollARS. THe dOlLar price of GOLd eStablIsHes tHe amounT of gold bullion — real MOneY — that the U.S. dolLar ReprESEnTs aT AnY GivEn MOmeNT In time.

Under the vArious formS oF ThE internatiONal GoLd standArd that PreceDEd the doLlar systeM, the curreNcY priCE Of gOld was held Constant. today, the dOLlar aND tHrougH thE dollaR oTheR currEncy prICes Of golD ratheR tHan a maThemaTiCal constAnt is a mathematical variaBle. HowEver, tHe cOntinued eXisTEncE of the dolLar sTandard — and The u.S. wOrld eMpiRE — requIres THiS vaRIable To noT Vary too muCH. THis IS TrUe because alL INTerNatioNalLY tradeD comModities — oil, nickel, COpper
 — and many economic indic ators have  weak ene d o rturn ed d own both in th e  U.S . and in other countri es ov er thel as t few  months —t h e r ep ocri si s  i s tel lin g us th at a reces sio nis not far o f f.  Whether t herecession wi llbe an“o rdi n ary r ece ssion ” or a 2008-t ype crisi si s, ofc ourse,a n ot hermatter.

Can theF ed e ral Reserve Sy stem s ta v eo f f t hecrisis bycr eatin g  more b a nk r e ser v es?

But can’ t the U.S.F ede ral Re se rve staveoff t he rec ession by m ovin g to incr ease b a nk rese r ves bysimply  in cre asin g  t he  qu an t ity of  Fe d era l Reserv e- cr eated  dol l a r s ? Tr ump  has  been  demanding th attheF eddo ex actly  tha t,  hopi ng tha t the  n ext recession w illbe postpo ned  t o s om e tim e  after  No vem ber 202 0.

Tec h nic al l y an d legally under th ec u rr ent “fia t mone y ”sy s tem, asth e s uppo r t ers o f Mo d er n Moneta ry The o ry  c orrectl ypointou t,the  Fedc an c reateany amou nt of dollars it wan t s to. We have co m e  a long  wa y since the  Ban k ingActo f184 4 , whi ch re qu i re d  that the Bank of E ng land h ave e nough gold in  its vault t o  mint in to f i ve gold sovereign s coi ns beforei t issued  an a dditiona l five-po u n d bankno te.  U. S.pol i c ym akers — the F e d eral  R eserveisfacinganunu sua l s pl it over w hat to d one xt  —  an d abo v e all Do na ldTr ump  areu rgingthe F eder al  R e ser ve andi ts O penMa rk et C omm it tee t o cr e ate  enough  new doll ars to f lo od  the U. S. commercial  b ank system  w ith  fresh r eservesand end the current cas h  squeez e i n the  sys tem. So m ayb e a re ces s ion is  not i mmine nt  af t e r all ? 
H owe ve r, any reg u l arreade rof t his blo g knows that behin d  th e Federal Res erv e Sy s t em  sh r in k ing  t h e d o l lar-denominated  monetaryba s ebeginningi n O ct ober 20 15 wasthe n e ed to k eep the d ollar gol dvalu e mor e or lessstable o r risk th e  endo fthe d oll ar sys te m a nd U. S. wor l d e mpire . Unde rthe do llarsy stem, th e “price” of the moneycommod ity g old  is quote d i n  te rms of U. S. d ollars. Th e d oll ar pr ice of go ld e s ta bli s hes t he a m ount of g o ld  bu l l io n — real mo n e y  —thatthe U.S. d olla r represents at a n y given moment  int i me. 

U n derth e various form s o ft h e intern at ional goldstandard  t h at pr eceded  the d ollar s y s te m , thecurr enc y price o f g ol d  was he ld  c o nstant . To da y, the  dolla r  and t hrough the dolla r oth e r  curr e ncy  pric es  of gol d  rat her than a  mathematic al con stan t isa mathe ma ticalvar ia ble. Howev e r, the co ntinu ed exis te nceofthe do llar s tanda rd —  a ndthe U.S.w o rl d  e mp i re— re quire sthis  variable to not v ary too muc h.  Th i s  is tr u eb e cause allint ernat i o nally trad e d co m mo d ities  — oil , nick el, cop p er
 —_and many_economic indicators have weakened_or turned_down_both in_the_U.S. and in_other countries over_the last few months_— the repo_crisis_is telling us that a recession is not far off. Whether the recession will_be_an “ordinary_recession”_or_a 2008-type crisis is, of_course, another matter.

Can the Federal_Reserve System_stave off the crisis by creating more bank_reserves?

But_can’t the U.S._Federal Reserve stave off the recession by moving to_increase bank reserves by simply increasing_the quantity of_Federal_Reserve-created_dollars? Trump has been_demanding that the Fed do exactly_that, hoping that the next recession_will be postponed to some time after_November 2020.

Technically and legally under the_current “fiat money” system, as_the supporters_of Modern Monetary Theory correctly_point out, the_Fed can_create any amount_of dollars it wants to. We_have come a_long way since the Banking Act_of_1844, which required_that_the_Bank of_England have enough_gold_in its_vault_to mint into five gold sovereigns_coins_before it issued an additional five-pound banknote._U.S. policymakers — the_Federal_Reserve is facing an_unusual split over what to_do next — and above all_Donald Trump_are urging_the Federal Reserve and its Open Market Committee to create enough_new dollars to flood the U.S._commercial bank system with_fresh reserves_and_end the current_cash_squeeze in_the system. So maybe a recession is_not imminent_after all?

However, any regular reader of_this blog knows that_behind_the Federal Reserve System shrinking the_dollar-denominated monetary base beginning in October_2015 was the need to_keep_the_dollar gold value more or_less stable or risk the end_of the dollar_system and U.S. world empire. Under the_dollar_system, the “price” of the money_commodity_gold is quoted in terms of_U.S._dollars._The dollar price of gold_establishes the amount of gold bullion_— real money — that the U.S. dollar represents_at any given_moment in time.

Under the various_forms_of_the international gold standard that preceded the dollar system, the_currency price_of gold was_held constant. Today, the dollar and through the dollar other_currency prices of gold rather than a_mathematical constant is a mathematical variable. However, the continued existence of_the dollar standard — and the U.S. world_empire — requires this variable to not_vary too much. This_is_true because all internationally traded commodities —_oil,_nickel,_copper