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0 sats \ 1 reply \ @Rothbardian_fanatic 9h \ on: What Is Inflation? Money's Supply & Demand (Josh Hendrickson, Economic Forces) econ
What does it matter if it is a dollar created by the Federal Reserve Bank or a dollar created by an ancillary bank? The dollars are fungible (one of the properties of money) and interchangeable. They are all controlled by the FRB by the amount of reserves required to be in business. They all create dollars out of thin air (your loans) and are debt instruments. As of this moment, we have no REAL money as defined by the basic law of the land, only FRB debt notes.
nice taglines, dude. Too bad there ain't much economic wisdom.
- types of money they matter because of the reasons Josh explains: they have different implications as to their inflationary effects -- a supply of base money, with counteracting demands for base money, is not the same as an increasing money multiplier (i.e., more highly leveraged banking system).
- dollars are not fungible and interchangeable. Actually, the money levels in the pyramid usually don't even touch: reserves in the central bank + physical banknotes almost never overlap with bank money. (very small leakage, they react and respond to different things.)
- The amount of reserves "required to be in business" is zero... if that's what controlling them, doesn't seem to be particularly controlling, huh?
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