#167152 - sgeos - Tue Mar 03, 2009 8:15 pm
Evidently the US Federal Reserve has nearly doubled the money supply.
$1,740 billion / $890 billion = 195.5%
Read their explanation of the situation here.
Alternatively, see a graph by copy-pasting this link:
http://research.stlouisfed.org/fred2/fredgraph?chart_type=line&width=1000&height=600&preserve_ratio=true&s[1][id]=BASENS
Yes, they can't force the banks to lend money. If the banks don't lend money it will not work its way through the system and be subject to fractional reserve magnification. So, if the money just sits there, there will be no inflationary effect even though the money supply has been increased. Regardless, after reading about their insightful planned exit strategies, I have absolutely no faith that they know what they are doing.
$1,740 billion / $890 billion = 195.5%
Read their explanation of the situation here.
Alternatively, see a graph by copy-pasting this link:
http://research.stlouisfed.org/fred2/fredgraph?chart_type=line&width=1000&height=600&preserve_ratio=true&s[1][id]=BASENS
Yes, they can't force the banks to lend money. If the banks don't lend money it will not work its way through the system and be subject to fractional reserve magnification. So, if the money just sits there, there will be no inflationary effect even though the money supply has been increased. Regardless, after reading about their insightful planned exit strategies, I have absolutely no faith that they know what they are doing.