Re: 1.9 billion to 823 billion...how?

sthomper — Thu, 05 Nov 2009 09:21:45 GMT

additionally, if the information is true, has so much cash? ever made its way into the federal reserve accounts before (relative to money supply)?

why would the federal reserve foist so many hundreds of billions of dollars on banks? was it a new policy or regulation that permitted this?

was there a conference of bank presidents tha jsut got together and said gee..why dont we all jsut not loan out the new 800 billion?

if they did how did the banks miscalculate 800 billion plus in goofs?

if the information is false please let me know.

1.9 billion to 823 billion...how?

sthomper — Thu, 05 Nov 2009 09:09:18 GMT

In August 2008, excess reserves stood at $1.9 billion. At the end of August 2009, excess reserves stood at almost $800 billion. By early September 2009, they had reached $823 billion.

http://mises.org/story/3709

i dont know if this is true or not. if true....

could someone explain how or where 800 plus billion dollars came from? and why?

is it 800 billion in physical currency? if so is there a website at the mint that would show all the new series numbers for 800 billion new bucks.

is the new 800 billion or so this? "the monetary base .... In December of 2007, it was $836.4 billion." from

http://mises.org/story/3556

the same link mentions that "A portion of the currency outstanding and a portion of the checking deposit liabilities of the Federal Reserve constitute the reserves of the banking system. These reserves are the standard money that the banks possess and can use to meet the withdrawals of depositors requesting currency."

i dont understand why or how 800 billion rather quickly made its way into federal reserve reserve accounts...what did this new 800 billin correspond to?

if there are several trillion in deposit account credit dollars? stated here "In December of 2007, there were $6901.9 billion of checking deposits backed by a mere $42.7 billion of standard money reserves."

http://mises.org/story/3556

how does 800 billion even come close to covering that?

Economics Questions

Re: 1.9 billion to 823 billion...how?

1.9 billion to 823 billion...how?