Yakk

James. The amount of cold hard cash in circulation means shit all.

No really.

Credit and numbers in computer bank accounts is the vast majority of the money supply.

There is > 8 trillion dollars of "M3" money supply out there. (M1 M2 and M3 are names of three different types of money supply, each containing the previous. M3 is "less cash-like" than M1 in some sense. M1 consists of things which are cash-equivients (like chequeing accounts).

I can't find an exact number, but there is most definately less than 1 trillion dollars in physical cash in circulation. I'd guess there was under half a trillion or less actually. 1000$ in physical cash for each man woman and child in the USA is probably more than enough.

Money is not physical cash, even though physical cash is money. You don't play games with the money supply of a modern industrialized nation by using a printing press. Money supply is typically manipulated by changing the interest rate charged to the banks when they "borrow" money from the central bank (note, however, the central bank doesn't have the money until it is borrowed. The numbers are simply pulled out of the ether, and interest is charged on them.)

This is all first year economics stuff mate. I was giving you the benefit of the doubt, but you really do seem to think that they are literally "printing up money", which is a cute belief. Read a book on the subject, things might not be a simple once you understand it, but you'll sound less silly.

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Last edited by JHVH : 10-29-4004 BC at 09:00 PM. Reason: Time for a rest.