Hi,
The money supply, according to Austrian economists, is about $8.7 trillion. Last year, the one-time Federal Reserve Audit revealed $16 trillion in loans to banks, companies and foreign governments. If the money supply is only $8.7 trillion, where does the $16 trillion fit in?
Thanks,
Dave
i can have $0 and still be in debt $1 million.
that money suppy you have posted is M2 which is m1 (currency and coins in circulation, checkable deposits in banks, and travelers checks) plus small denomination time deposits, savings deposits, money market deposit accounts and mutual funds.
*the trillions of debt is a cumulative debt since andrew jackson balanced it in 1835. ill let someone more knowledge explain where the 17 trillion is owed.
Hi Grant,
I don't understand your reply. Based on your response, the money supply would be $1M, not zero. I expect any newly issued debt would be done with newly issued dollars, thereby increasing the money supply.
The money supply I posted is not the official M1 or M2, but instead the "Austrian Money Supply".
i dont know where you are getting that is the 'Austrian Money Supply' when the chart shows that its source is St Louis federal reserve.
I happen to have the fed statistical release of money stock in front of me. on april 30th m2 was 9.9. i dont know why an 'austrian' chart would be less than what the fed claims.
The Austrian Money supply uses Fed data, but excludes some items such as Traveler's checks and money market mutual funds. See more info here on Mises.org
Either way, where does Fed Reserve report the $16 trillion found in the audit?
personally id go with 222 trillion debt.
The fed isnt the US treasury.
the us treasury has the 16 trillion debt.