Readers of this post – especially economists in academe, the Federal Reserve, the Department of the Treasury and the National Bureau of Economic Research – should also read the following posts:

• The Ineptitude of Central Bank Operations
• Efficient Cause vs. Formal Cause
• Absorbing Several Trillion Dollars; Wishful Thinking vs. Scientific Macroeconomics
• Preliminary Guidance and The Broad Context of Interest Ratee
• Further re The Broad Context of Interest Rates
• Credit Money and its Circulation; the Return OF Investment
• Interest Payments and Their Circulation

The entities actively constituting the current economic process are still contesting among themselves to restore the normative relations among Outlays-Incomes and Expenditures-Receipts distorted by the government’s recent inflationary flooding of free money into the various channels and pools of the system.   Also, keep in mind that the underlying  context of the excerpts selected below assumes a money supply and interest rates properly calibrated to support the correlation of the magnitudes and frequencies of flows of products with payments.  Unfortunately, the money supply has been bollixed and the monetary flows have been tortured by the government’s recent free-money flood.  The fair absorption of the recent flood is still in process.

We begin with seven brief excerpts extracted from, thus pointing to, our subsequent treatment, Continue reading →