The central bank says it will continue pumping money into the economy. Investors cheer a hint in today's GDP report that consumers are still spending. Bank of America chief Ken Lewis keeps his job but is no longer chairman. Starbucks earnings beat estimates.
By Charley Blaine and Elizabeth Strott
Don't expect interest rates to rise anytime soon, the Federal Reserve said today. The economy is so weak that there are no inflationary pressures to worry about yet.
So, the central bank decided to leave interest rates at record low levels. The decision -- and a hint that consumers may be starting to spend again -- was expected and cheered by investors, who pushed stocks to their highest levels since January.
The Dow Jones industrials ($INDU) closed up 169 points, or 2.1%, to 8,185.73. The Standard & Poor's 500 Index ($INX) was up 18 points, or 2.2%, to 873.64.
The Nasdaq Composite Index ($COMPX) was up 38 points, or 2.3%, to 1,711.94, and the Nasdaq-100 Index ($NDX.X), which tracks the largest Nasdaq stocks, jumped 20 points, or 1.5%, to 1,382.38.
The rally broke a two-day losing streak for the major averages. It produced the best close for the Dow since Jan. 29 and since Jan. 28 for the S&P 500. The Nasdaq saw its first close above 1,700 since Nov. 4. The Dow had been up as many as 241 points before profit-taking set in.
Futures trading suggests the U.S. stock market will open modestly higher on Thursday.
The Fed left its key federal funds rate, the rate banks charge each other for overnight loans, at 0% to 0.25%. The discount rate -- what the Fed charges financial institutions for short-term loans -- was left at 0.5%.
Because of the economy's fragile state, the Fed said it will continue to leave interest rates at record low levels to try to get the economy moving. Moreover, the Fed's statement said the central bank will continue to buy government and government-related securities to give the economy the fuel to start a recovery.
The Fed expects to continue its plan to spend $1.75 trillion buying mortgage-backed securities and related debt and $300 billion in Treasury securities later this year.
About the only good economic news in the statement was the Fed's note that "the pace of contraction appears to be somewhat slower. Household spending has shown signs of stabilizing but remains constrained by ongoing job losses, lower housing wealth, and tight credit.
Sunday, March 15, 2009
KNOW YOUR MONEY
How To Detect Counterfeit Money
The public has a role in maintaining the integrity of U.S. currency. You can help guard against the threat from counterfeiters by becoming more familiar with United States currency.
Look at the money you receive. Compare a suspect note with a genuine note of the same denomination and series, paying attention to the quality of printing and paper characteristics. Look for differences, not similarities.
United States Dollars
Portrait
The genuine portrait appears lifelike and stands out distinctly from the background. The counterfeit portrait is usually lifeless and flat. Details merge into the background which is often too dark or mottled.
Federal Reserve and Treasury Seals
On a genuine bill, the saw-tooth points of the Federal Reserve and Treasury seals are clear, distinct, and sharp. The counterfeit seals may have uneven, blunt, or broken saw-tooth points.
Border
The fine lines in the border of a genuine bill are clear and unbroken. On the counterfeit, the lines in the outer margin and scrollwork may be blurred and indistinct.
Serial Numbers
Genuine serial numbers have a distinctive style and are evenly spaced. The serial numbers are printed in the same ink color as the Treasury Seal. On a counterfeit, the serial numbers may differ in color or shade of ink from the Treasury seal. The numbers may not be uniformly spaced or aligned.
Paper
Genuine currency paper has tiny red and blue fibers embedded throughout. Often counterfeiters try to simulate these fibers by printing tiny red and blue lines on their paper. Close inspection reveals, however, that on the counterfeit note the lines are printed on the surface, not embedded in the paper. It is illegal to reproduce the distinctive paper used in the manufacturing of United States currency.
The public has a role in maintaining the integrity of U.S. currency. You can help guard against the threat from counterfeiters by becoming more familiar with United States currency.
Look at the money you receive. Compare a suspect note with a genuine note of the same denomination and series, paying attention to the quality of printing and paper characteristics. Look for differences, not similarities.
United States Dollars
Portrait
The genuine portrait appears lifelike and stands out distinctly from the background. The counterfeit portrait is usually lifeless and flat. Details merge into the background which is often too dark or mottled.
Federal Reserve and Treasury Seals
On a genuine bill, the saw-tooth points of the Federal Reserve and Treasury seals are clear, distinct, and sharp. The counterfeit seals may have uneven, blunt, or broken saw-tooth points.
Border
The fine lines in the border of a genuine bill are clear and unbroken. On the counterfeit, the lines in the outer margin and scrollwork may be blurred and indistinct.
Serial Numbers
Genuine serial numbers have a distinctive style and are evenly spaced. The serial numbers are printed in the same ink color as the Treasury Seal. On a counterfeit, the serial numbers may differ in color or shade of ink from the Treasury seal. The numbers may not be uniformly spaced or aligned.
Paper
Genuine currency paper has tiny red and blue fibers embedded throughout. Often counterfeiters try to simulate these fibers by printing tiny red and blue lines on their paper. Close inspection reveals, however, that on the counterfeit note the lines are printed on the surface, not embedded in the paper. It is illegal to reproduce the distinctive paper used in the manufacturing of United States currency.
Counterfeit banknote detection pen
Counterfeit pens are pens containing an iodine-based ink. They can be used to detect counterfeit Swiss franc, euro and United States banknotes amongst others. Typically, genuine banknotes are printed on paper based on cotton fibers, and do not contain the starches that react with iodine. When the pen is used to mark genuine bills, the mark is yellowish or clear. Counterfeit pens are most effective against notes printed on standard printer or photocopier paper.
1. Pen manufacturers claim such pens will detect a great majority of counterfeit bills
2. but critics suggest the effectiveness is much lower.
Critics claim that professional counterfeiters use starch-free paper, making the pen unable to detect the majority of counterfeit money in circulation.
3. Magician and skeptic James Randi has written about the ineffectiveness of counterfeit pens on numerous occasions
4. The Secret Service does not include such pens in their guidelines for the public's detection of counterfeit US currency.
5. Uses a pen as an example during his lectures.
6. Randi claims to have contacted a United States Secret Service inspector and asked whether the pen works as advertised, to which the inspector replied "it is not dependable."
7. Some US counterfeiters bleach small denominations and print more valuable bills on the resulting blank paper to evade this test,
8. Although changes to the currency since 2004 have made this method easier to detect.
This is one reason that many currencies use different sized notes for different denominations.
1. Pen manufacturers claim such pens will detect a great majority of counterfeit bills
2. but critics suggest the effectiveness is much lower.
Critics claim that professional counterfeiters use starch-free paper, making the pen unable to detect the majority of counterfeit money in circulation.
3. Magician and skeptic James Randi has written about the ineffectiveness of counterfeit pens on numerous occasions
4. The Secret Service does not include such pens in their guidelines for the public's detection of counterfeit US currency.
5. Uses a pen as an example during his lectures.
6. Randi claims to have contacted a United States Secret Service inspector and asked whether the pen works as advertised, to which the inspector replied "it is not dependable."
7. Some US counterfeiters bleach small denominations and print more valuable bills on the resulting blank paper to evade this test,
8. Although changes to the currency since 2004 have made this method easier to detect.
This is one reason that many currencies use different sized notes for different denominations.
Counterfeiting Prevention
Overall, counterfeiting of U.S. currency remains extremely low. This is due primarily to the combination of improvements in the notes' security features as mentioned above, aggressive law enforcement, and educational efforts to inform the public about how to verify their currency. According to statistics, the amount of counterfeit U.S. currency worldwide is less than one percent of genuine U.S. currency in circulation.
Most recently, the government has detected a pattern of which counterfeiters bleach the ink off of the $5 bills, and then print counterfeit $100 bills on the paper. This is especially deceiving to the public because of the similar placement of security features on the bills. In response to this, the government has decided to redesign the $5 bill in an attempt to ensure that this problem does not continue into the future.
The best way the public can protect themselves from counterfeit currency is to know the different security features to look for in authentic U.S. currency. The government will continue their worldwide public education program to raise awareness of changes to the U.S. currency and help to protect our money.
Most recently, the government has detected a pattern of which counterfeiters bleach the ink off of the $5 bills, and then print counterfeit $100 bills on the paper. This is especially deceiving to the public because of the similar placement of security features on the bills. In response to this, the government has decided to redesign the $5 bill in an attempt to ensure that this problem does not continue into the future.
The best way the public can protect themselves from counterfeit currency is to know the different security features to look for in authentic U.S. currency. The government will continue their worldwide public education program to raise awareness of changes to the U.S. currency and help to protect our money.
Counterfeit Money
Some of the ill-effects that counterfeit money has on society are:
1. Reduction in the value of real money
2. Increase in prices (inflation) due to more money getting circulated in the economy - an unauthorized artificial increase in the money supply
3. Decrease in the acceptability (satisfactoriness) of money - payees may demand electronic transfers of real money or payment in another currency
(or even payment in a precious metal such as gold)
4. Companies are not reimbursed for counterfeits. This forces them to increase prices of commodities
At the same time, in countries where paper money is a small fraction of the total money in circulation, the macroeconomic effects of counterfeiting of currency may not be significant.
The microeconomic effects, such as confidence in currency, however, may be large.
Anti-counterfeiting measures
Traditionally, anti-counterfeiting measures involved including fine detail with raised intaglio printing on bills which would allow non-experts to easily spot forgeries. On coins, milled or reeded (marked with parallel grooves) edges are used to show that none of the valuable metal has been scraped off.
This detects the shaving or clipping (paring off) of the rim of the coin. However, it does not detect sweating, or shaking coins in a bag and collecting the resulting dust. Since this technique removes a smaller amount, it is primarily used on the most valuable coins, such as gold.
In early paper money in Colonial North America, one creative means of deterring counterfeiters was to print the impression of a leaf in the bill. Since the patterns found in a leaf were unique and complex, they were nearly impossible to reproduce.
In the late twentieth century advances in computer and photocopy technology made it possible for people without sophisticated training to easily copy currency. In response, national engraving bureaus began to include new more sophisticated anti-counterfeiting systems such as holograms, multi-colored bills, embedded devices such as strips, microprinting and inks whose colors changed depending on the angle of the light, and the use of design features such as the "EURion constellation" which disables modern photocopiers. Software programs such as Adobe Photoshop have been modified by their manufacturers to obstruct manipulation of scanned images of banknotes.
This detects the shaving or clipping (paring off) of the rim of the coin. However, it does not detect sweating, or shaking coins in a bag and collecting the resulting dust. Since this technique removes a smaller amount, it is primarily used on the most valuable coins, such as gold.
In early paper money in Colonial North America, one creative means of deterring counterfeiters was to print the impression of a leaf in the bill. Since the patterns found in a leaf were unique and complex, they were nearly impossible to reproduce.
In the late twentieth century advances in computer and photocopy technology made it possible for people without sophisticated training to easily copy currency. In response, national engraving bureaus began to include new more sophisticated anti-counterfeiting systems such as holograms, multi-colored bills, embedded devices such as strips, microprinting and inks whose colors changed depending on the angle of the light, and the use of design features such as the "EURion constellation" which disables modern photocopiers. Software programs such as Adobe Photoshop have been modified by their manufacturers to obstruct manipulation of scanned images of banknotes.
Money determines how our economies work
The way our money works determines how our economies work. If we are prepared to see 'money' in the broadest possible sense as the set of laws, rules, regulations and conventions that govern our behaviour in the realm of producing our means of life, then it becomes apparent how 'money' produces the general characteristics of modern economies identified above. This is the 'operating system' of our economies.
All national money systems are debt-based. This means that money is issued into circulation by financial institutions when it is loaned in one form or another. These loans have to be repaid, usually with interest or benefit of some kind (i.e. more has to be paid back than was originally loaned). The only way that the extra amount can enter the economy so that the borrowers can earn it to pay back the interest as well as the principal is if more money is loaned into existence by others.
The rate at which new money enters the economy must be equal to or exceed the amount of interest that has to be paid back. There is thus a never-ending, upward spiral of debt, interest and money creation. If the amount of new money created is less than the amount owed in interest, the economy enters into recession with the dire consequences that are so familiar, including foreclosures and rising unemployment.
This need for the money supply to grow the driving force behind the need for all economies to grow.
All national money systems are debt-based. This means that money is issued into circulation by financial institutions when it is loaned in one form or another. These loans have to be repaid, usually with interest or benefit of some kind (i.e. more has to be paid back than was originally loaned). The only way that the extra amount can enter the economy so that the borrowers can earn it to pay back the interest as well as the principal is if more money is loaned into existence by others.
The rate at which new money enters the economy must be equal to or exceed the amount of interest that has to be paid back. There is thus a never-ending, upward spiral of debt, interest and money creation. If the amount of new money created is less than the amount owed in interest, the economy enters into recession with the dire consequences that are so familiar, including foreclosures and rising unemployment.
This need for the money supply to grow the driving force behind the need for all economies to grow.
Money in existence
We have money because private, profit-making institutions (banks) provide it as a business service. The money we use is thus not a neutral mechanism provided to us purely for the benefit of facilitating exchange.
All our money is lent into existence and it comes into circulation because banks want to make a profit through the interest that borrowers have to pay for using it. At the time that the banks create the money (as debt) they do not create sufficient to pay back the interest.
Bank debt money is thus always in chronic short supply. The only way that this money system can keep going is if there is a constant expansion of bank debt money, an expansion rate that is greater than the amount needed to pay back the principal plus the interest.
This is the force that drives our economies and why every economic agent and entity calls for more growth.
All our money is lent into existence and it comes into circulation because banks want to make a profit through the interest that borrowers have to pay for using it. At the time that the banks create the money (as debt) they do not create sufficient to pay back the interest.
Bank debt money is thus always in chronic short supply. The only way that this money system can keep going is if there is a constant expansion of bank debt money, an expansion rate that is greater than the amount needed to pay back the principal plus the interest.
This is the force that drives our economies and why every economic agent and entity calls for more growth.
Getting hold of the money
Conventional economics assumes that money is 'stuff', a 'thing', which like all things has to be created and then distributed. There is therefore a quantity of it that has to be restricted and controlled. Because it is 'stuff' it is subject to the same laws of supply and demand as other stuff.And like any other stuff it must have a value in itself, a value that can go up and down in relation to other things. And because it is a thing it can be possessed, collected, accumulated and withdrawn from circulation. It can be stolen, lost, traded and lent.
If someone has some and another has none, the former can lend it to the latter and ask for more back when they return it. The person who borrows it has to work extra hard to return the original amount and the little bit extra. In this way the borrower works for the lender.
Getting this money stuff is not directly related to the delivery of real goods and services. There are a multitude of ways of getting hold of it, some of which do involve the delivery of real goods and services. For most of us the only way to get hold of it is to sell our labour to someone.
This is called a job and most of us work in these jobs, not because we love the work or even because the work is socially necessary, but because we need to get hold of the money stuff. Without it we're in serious trouble. Those who have lots of money have to find a way of keeping that money and, hopefully, increasing it.
They do that by 'investing' the money in something that will bring in a return. That could involve investing it in machinery that can be used to create real wealth, but there are other ways of investing money that will ensure a greater return.
Money as exchange medium
Imagine if money-as-we-know-it had never been invented.
It seems like an impossible idea, but imagine if gold had been an extremely rare substance on earth and thus the idea of using it as an exchange medium had never caught on, and no other substance on earth had become the unquestioned medium that everyone would accept in exchange for the products of their labour.
Perhaps people would have bartered things in the beginning and certain commodities would have become 'money' in the sense that most people would accept them in exchange even if they had no direct use for them.
But as trade expanded and commerce became more complex, instead of there developing a universally acceptable exchange commodity such as gold, people just granted each other credit and kept a record of it.
In other words, instead of swapping commodities to get what they wanted, people just kept a record of what they delivered to others, and those who received the goods kept a record of what they owed.
It seems like an impossible idea, but imagine if gold had been an extremely rare substance on earth and thus the idea of using it as an exchange medium had never caught on, and no other substance on earth had become the unquestioned medium that everyone would accept in exchange for the products of their labour.
Perhaps people would have bartered things in the beginning and certain commodities would have become 'money' in the sense that most people would accept them in exchange even if they had no direct use for them.
But as trade expanded and commerce became more complex, instead of there developing a universally acceptable exchange commodity such as gold, people just granted each other credit and kept a record of it.
In other words, instead of swapping commodities to get what they wanted, people just kept a record of what they delivered to others, and those who received the goods kept a record of what they owed.
Money System
Why invent a new money when our official monies seem to do the job?Because our conventional money system is at the root of most of the misery, suffering and problems faced by humanity. It is also the prime factor behind the environmental crises we face.
The money systems we use are not neutral, non-partisan, services provided by our governments. They are a 'service' provided by private financial institutions (banks) specifically for their own benefit rather than those who use them.
Our conventional money systems only work for those who already have money and marginalise the rest. They are also the fuel that powers the growth imperative of our economies, forcing us all to compete and having disastrous consequences for the health of our planet.
The main problem with conventional money is that it 'exists', or at least we are encouraged by the commercial banks to believe that it exists so that they can 'lend' it to us at a price! As such it has to be created, distributed and the amount of it restricted and controlled.
As money comes into existence when commercial banks grant loans, every unit in existence is based on a unit of debt. This determines the quantity of money, which has nothing to do with the amount of money people require to live decent lives.
Such money is also based on speculation, because it is loaned into existence on the premise that it will be payed back in the future with interest. Despite its modern electronic trappings, our conventional money systems are a relic of history. They are the latter day equivalent of cattle or gold.
The money systems we use are not neutral, non-partisan, services provided by our governments. They are a 'service' provided by private financial institutions (banks) specifically for their own benefit rather than those who use them.
Our conventional money systems only work for those who already have money and marginalise the rest. They are also the fuel that powers the growth imperative of our economies, forcing us all to compete and having disastrous consequences for the health of our planet.
The main problem with conventional money is that it 'exists', or at least we are encouraged by the commercial banks to believe that it exists so that they can 'lend' it to us at a price! As such it has to be created, distributed and the amount of it restricted and controlled.
As money comes into existence when commercial banks grant loans, every unit in existence is based on a unit of debt. This determines the quantity of money, which has nothing to do with the amount of money people require to live decent lives.
Such money is also based on speculation, because it is loaned into existence on the premise that it will be payed back in the future with interest. Despite its modern electronic trappings, our conventional money systems are a relic of history. They are the latter day equivalent of cattle or gold.
The Debt-base money system
The debt-based money system was developed for the industrial revolution to provide a rapidly expanding money supply that could not be provided by a money system based on the quantity of precious metals.
This introduced intangible money that did not exist in the same way as earlier 'hard' monies, but people continued treating it as a tradable commodity. Money that 'exists' can thus be accumulated like any other commodity.
It can also be stolen, traded, collected, destroyed and lost. Its distribution is not based on the delivery of value to others but on the ability of people to 'make money'. Conventional money has no restraints and always flows away from where it is created and needed, towards the 'money centres'.
The CES breaks out of this paradigm by recognising that the electronics revolution has eliminated the need for an exchange medium. Never before in the history of humankind has it been possible to record accurately who delivers value to whom.
This introduced intangible money that did not exist in the same way as earlier 'hard' monies, but people continued treating it as a tradable commodity. Money that 'exists' can thus be accumulated like any other commodity.
It can also be stolen, traded, collected, destroyed and lost. Its distribution is not based on the delivery of value to others but on the ability of people to 'make money'. Conventional money has no restraints and always flows away from where it is created and needed, towards the 'money centres'.
The CES breaks out of this paradigm by recognising that the electronics revolution has eliminated the need for an exchange medium. Never before in the history of humankind has it been possible to record accurately who delivers value to whom.
Money as an Information
Now that this is possible there is no longer a need for an 'existential' money; money can at last truly measure the delivery of value and be based on nothing other than the expenditure of effort by people for others. Money is information - a unit of measure - not a thing.
If money does not need to exist as a thing it does not have to be created and distributed. People will earn money solely on the basis of their delivery of value to others, not through charging interest, trading it in money markets and a multitude of other ways without delivering anything of real value.
Money that does not exist can never be in short supply, but no one can have more of it than the value they can deliver. No one will be able to take more of the social product than they contribute to it, as they do under our current money system. Wealth will remain where it is created and needed, and not leak away to the 'money centres'.
If money does not need to exist as a thing it does not have to be created and distributed. People will earn money solely on the basis of their delivery of value to others, not through charging interest, trading it in money markets and a multitude of other ways without delivering anything of real value.
Money that does not exist can never be in short supply, but no one can have more of it than the value they can deliver. No one will be able to take more of the social product than they contribute to it, as they do under our current money system. Wealth will remain where it is created and needed, and not leak away to the 'money centres'.
Public Domain Money
Conventional money is created as debt by private financial institutions for their own profit-making purposes, not as a public service. This is the root cause of the economic, social and environmental problems that beset us. The amount of debt determines the quantity of money, which has nothing to do with the amount of money we need to live decent lives.
CES 'money' is created by its users so it can never be in short supply. So long as you can offer something of value you can have from the community goods and services of like value.
CES money is public domain money. It is not 'owned' or controlled by anyone and as such belongs to the commons.
It is 'created' by the traders who use it, not by a third party outside the circuit of buyers and sellers (banks) who do so for their own parasitic gain.
When money is proprietary it confers the money power on those who 'create' and control it; when it is in the public domain the money power resides with its users, who can ensure that it is used for the public good.
CES 'money' is created by its users so it can never be in short supply. So long as you can offer something of value you can have from the community goods and services of like value.
CES money is public domain money. It is not 'owned' or controlled by anyone and as such belongs to the commons.
It is 'created' by the traders who use it, not by a third party outside the circuit of buyers and sellers (banks) who do so for their own parasitic gain.
When money is proprietary it confers the money power on those who 'create' and control it; when it is in the public domain the money power resides with its users, who can ensure that it is used for the public good.
How Banks Create the World's Money?
“Banking was conceived in iniquity and was born in sin. The bankers own the earth. Take it away from them, but leave them the power to create money, and with the flick of the pen they will create enough deposits to buy it back again. However, take it away from them, and all the great fortunes like mine will disappear and they ought to disappear, for this would be a happier and better world to live in. But, if you wish to remain the slaves of bankers and pay the cost of your own slavery, let them continue to create money."
By: Sir Josiah Stamp,
Director of the Bank of England (appointed 1928).
Reputed to be the 2nd wealthiest man in England at that time.
By: Sir Josiah Stamp,
Director of the Bank of England (appointed 1928).
Reputed to be the 2nd wealthiest man in England at that time.
Money and Banking
Money is a human contrivance, the primary purpose of which is to enable the easy exchange of goods, services, and capital assets. The way in which a monetary system is designed and operated determines how effectively and efficiently it achieves that purpose.
Since money is such a fundamental and necessary element in the process of economic interaction, it has often been the object of political manipulation and control, and, in fact, central bank and government monopolies have become virtually universal throughout the world.
When people have a choice of currencies and exchange mechanisms, the advantages of exchange can be more fully realized, economic equity can be advanced, and people will be empowered to more fully meet their material needs.
Since money is such a fundamental and necessary element in the process of economic interaction, it has often been the object of political manipulation and control, and, in fact, central bank and government monopolies have become virtually universal throughout the world.
When people have a choice of currencies and exchange mechanisms, the advantages of exchange can be more fully realized, economic equity can be advanced, and people will be empowered to more fully meet their material needs.
Circulating Currency
A currency is a unit of exchange and hence a kind of money and medium of exchange. Currency includes paper banknotes and metal coins. Countries generally have a monopoly on the issuing of currency, although some countries share currencies with other countries.
Today, currencies are the dominant means of exchange. Different countries may use the same term to refer to their respective currencies, even though the currencies may have little else to do with each other.
A place that is technically part of another country sometimes uses a different currency from that of the parent country. Any form of money, including paper notes and coins, which is issued by a government and is used in public circulation.
A currency is used as the basis of trade for general goods and services within an economy. Usually, each country has its own currency, and exchange with the legal tender is only valid in the respective country.
However, there are groups of nations that band together and use a single currency between the members (e.g. the Euro-zone).
Currency value is most broadly based on supply and demand, although some developing countries peg the value to a more stable country's currency or to a basket of currencies/investment vehicles.
Today, currencies are the dominant means of exchange. Different countries may use the same term to refer to their respective currencies, even though the currencies may have little else to do with each other.
A place that is technically part of another country sometimes uses a different currency from that of the parent country. Any form of money, including paper notes and coins, which is issued by a government and is used in public circulation.
A currency is used as the basis of trade for general goods and services within an economy. Usually, each country has its own currency, and exchange with the legal tender is only valid in the respective country.
However, there are groups of nations that band together and use a single currency between the members (e.g. the Euro-zone).
Currency value is most broadly based on supply and demand, although some developing countries peg the value to a more stable country's currency or to a basket of currencies/investment vehicles.
Results in open market activity
The policy enacted by a central bank in order to control money supply in their domestic economy. Monetary policy can take many different forms, but the common denominator almost always results in open market activity that affects interest rates and currency valuations for a given economy.
Central banks will enact varying monetary policy in order to control price stability and economic growth. For some countries, central bank officials are required to enact policy that keeps domestic inflation within given ranges, while others operate more freely on a more de facto basis.
As an example, a central bank may choose to limit monetary supply if it feels that inflation is a threat to price and economic growth stability. In order to do so, it will attempt to raise interest rate levels by changing its own lending rates and/or affecting monetary supply in the broader market.
Though a full discussion of different monetary policy regimes is beyond the scope of this definition, it is important to know and appreciate the distinctions between global central banks and their distinct methods to control price and growth stability.
Central banks will enact varying monetary policy in order to control price stability and economic growth. For some countries, central bank officials are required to enact policy that keeps domestic inflation within given ranges, while others operate more freely on a more de facto basis.
As an example, a central bank may choose to limit monetary supply if it feels that inflation is a threat to price and economic growth stability. In order to do so, it will attempt to raise interest rate levels by changing its own lending rates and/or affecting monetary supply in the broader market.
Though a full discussion of different monetary policy regimes is beyond the scope of this definition, it is important to know and appreciate the distinctions between global central banks and their distinct methods to control price and growth stability.
The Money flow index chart
Typically, when talking about money flow we are talking about the money flow index chart which is scaled like RSI (0 to 100) with the same overbought and oversold levels.
The money flow index is essentially a volume weighted version of RSI
(price ups multiplied by volume and added and price downs multiplied by volume added for a given period).
If you're confused by this, got back to the relative strength index tutorial and take a look at the formula for calculating RSI and it should be clearer.
Money flow chart
The money you are putting into our service is not an expense - it is an investment. Every single cent is used to bring you profit. On the below chart you can analyze the way, your money travel through the system back to you.
The money flow index is essentially a volume weighted version of RSI
(price ups multiplied by volume and added and price downs multiplied by volume added for a given period).
If you're confused by this, got back to the relative strength index tutorial and take a look at the formula for calculating RSI and it should be clearer.
Money flow chart
The money you are putting into our service is not an expense - it is an investment. Every single cent is used to bring you profit. On the below chart you can analyze the way, your money travel through the system back to you.
Financial services company
The management of a client's investments by a financial services company. Asset management companies pool funds and invest on behalf of their clients, giving them access to a wider range of traditional and exotic financial products that are typically not available to the average investor.
Costs associated with such services usually restrict access of Asset Management services to high net-worth individuals, corporations, governments, financial intermediaries and investment pools.
Asset Management Accounts refer to the offering of an extensive array of financial products via one group of accounts in one financial institution.
Banking services like cheque writing, credit & debit cards, money market access, brokerage services and lending all available through one financial company and in one statement.
Since investors typically place a larger amount of funds in asset management accounts, such accounts usually offer higher returns than can be found in traditional cheque and savings accounts.
Although investors may be able to find lower fees and higher returns through a number of different financial specialists, the convenience of only having to deal with one firm and getting all financial transactions in one statement may make asset management accounts more advantageous to some investors.
Costs associated with such services usually restrict access of Asset Management services to high net-worth individuals, corporations, governments, financial intermediaries and investment pools.
Asset Management Accounts refer to the offering of an extensive array of financial products via one group of accounts in one financial institution.
Banking services like cheque writing, credit & debit cards, money market access, brokerage services and lending all available through one financial company and in one statement.
Since investors typically place a larger amount of funds in asset management accounts, such accounts usually offer higher returns than can be found in traditional cheque and savings accounts.
Although investors may be able to find lower fees and higher returns through a number of different financial specialists, the convenience of only having to deal with one firm and getting all financial transactions in one statement may make asset management accounts more advantageous to some investors.
Subscribe to:
Posts (Atom)