I created a diagram. Every arrow means ownership and goodwill. Interest is paid in the opposite direction. Some arrows are missing, imagine them, by contract type. Cash Reserves and Deposits are NOT 1:1. Only if you transfer from Bank1 to Bank2, similar to physical banknotes.

@SpachusAus @MetopianFuture RBA has its own sources of IE

@ttmygh * consolidation

@Brad_Setser Good times create weak men. And, weak men create hard times.

RT @Brad_Setser: Apparently you can be very rich without quite knowing how to avoid making a very common error (one I once made too) when t…

@SpachusAus Oh, I read all those decisions. RBA belives that their policy is restrictive enough. They will find a convenient data/indicator to support their bias. Yes, they are effectively monetarists and biased towards expansion and “support”.

@SpachusAus “When it comes to inflation, only the downside errors are fixed. If prices grow too slow, RBA will force them to catch up. But if they grow too fast, no one will undo that. In fact, central banks will make sure that nothing and no one brings back prior price levels.”

RT @profplum99: Credit spreads

RT @profplum99: Longer term

RT @profplum99: Will history repeat?

RT @profplum99: Bubble? What Bubble?

RT @IllinoisBeer: A 25% tariff on aluminum will be devastating for Illinois. Our craft breweries could see a $10.2 million increase in pa…

RT @scottlincicome: The same day Trump announces new steel tariffs, US steelmaking giant Nucor informs its US customers of price hikes. Her…

RT @JGodiasMurphy: The harm to US industry imposed by the steel and aluminum tariffs announced last night is especially obvious with regard…

RT @Brad_Setser: @tylermacro10 US equity market outperformance, especially in dollar terms @M_C_Klein

RT @Brad_Setser: One of the least useful statistics around (even if it is getting a lot of attention now). Trade doesn't balance bilateral…

RT @conksresearch: are these made up book-entry Treasury securities in the room with us right now?

RT @NickTimiraos: In the NY Fed's consumer survey, inflation expectations at the 1- and 3-year horizons were unchanged in January, opening…