Scot Wick Blog

  Mostly summarized from Gregory Mankiw’s Principles of Economics, 5th Ed. PART 10 Money and Prices in the Long Run Chapter 29 of 36 The Monetary System Section 12 of 22 … The First National Bank bankers ponder their policy of 100% reserve banking. Keeping all money depositors have deposited at their bank idle in their vaults seems unnecessary. All the depositors will not want to withdraw all their money at one time. Why not lend some out and earn a profit by charging interest on the loans? Families buying houses, firms building new factories, and college students paying tuition would want to take out loans. … First National Bank would have to keep some reserves in its vault so currency is available when depositors want to make withdrawals. If the inflow of new deposits is about the same as the outflow of withdrawals, First National Bank would need to keep only a fraction of its deposits in reserve. … The First National Bank bankers decide to make loans and not hold 100% of deposit...

  Mostly summarized from Gregory Mankiw’s Principles of Economics, 5th Ed. PART 10 Money and Prices in the Long Run Chapter 29 of 36 The Monetary System Section 11 of 22 … Banks play a central role in the monetary system. The amount of money you hold includes both · currency, the paper and coin money you have in your wallet · demand deposits, the balance in your checking account Because of the demand deposits held in banks the behavior of banks can influence the quantity of demand deposits in the economy and therefore influence the money supply. Here we will look at how banks affect the money supply and how they complicate the Fed's job of controlling the money supply. … Imagine an economy where there are no banks and currency is the only form of money. Suppose the total economy currency quantity is $100, therefore the money supply is $100. Then, someone opens a bank, “First National Bank.” First National Bank is only a depository institution. It accepts deposits and checking acco...

  Mostly summarized from Gregory Mankiw’s Principles of Economics, 5th Ed. PART 10 Money and Prices in the Long Run Chapter 29 of 36 The Monetary System Section 10 of 22 … The Federal Open Market Committee (FOMC) is comprised of · the seven members of the Federal Reserve Bank (Fed) board of governors · five of the twelve Fed regional bank presidents At each FOMC meeting held every six weeks in D.C. all twelve Fed regional bank presidents attend but only five get to vote. The five with voting rights rotate among the twelve regional presidents. The president of the New York Fed always gets a vote, because · New York is the traditional financial center of the U.S. economy · all Fed purchases and sales of government bonds are conducted at the New York branch … The FOMC has the power to increase or decrease the number of dollars circulating in the economy. The Fed's primary tool of money supply control is the open-market operation, which is the purchase and sale of U.S. government bonds...

  Fumiko Scot's information: Weight at 166 pounds, got to 160 pounds five years ago and have recently been bouncing between 163 and 168. Common sense ways to lose and keep off weight are eat right and light and get lots of exercise. Main exercise is walking, do 1~2 miles most days. Over career worked as a salesman in the steelmaking, fasteners, and auto manufacturing industries, lots of travel in U.S., Canada, Mexico, and Japan. Have visited every U.S. city with a major league, MLB, NFL, NBA, NHL, sports team except Sacramento, have gotten as close as Travis Air Force Base. Often traveled on Sundays, much time on the road so could not eat right and get enough exercise so got heavy, up to 200 lbs. Was on commission and made enough to retire early, able eat good food and get enough exercise. Now spend most time reading and writing. Our Wick branch goes back to the brother of owner of the Wick House at Morristown National Historical Park in Morristown New Jersey, and on back to Staine...

  “The world we see that seems so insane is the result of a belief system that is not working. To perceive the world differently, we must be willing to change our belief system, let the past slip away, expand our sense of now, and dissolve the fear in our minds.” - William James “All experience has shown mankind are more disposed to suffer, while evils are sufferable, than to right themselves by abolishing the forms to which they are accustomed.” - Thomas Jefferson “Wherever good fortune enters, envy lays siege and attacks it. And when it departs, sorrow and repentance remain behind.” - Leonardo da Vinci “Struggle is the indispensable accompaniment of progress. If men were entirely social, man would stagnate. A certain alloy of individualism and competition is required to make the human species survive and grow. Without qualities of an unsocial kind men might have led an Arcadian shepherd life in complete harmony, contentment, and mutual love. But in that case all their talents wou...