All? 
Money. Doing it Right this Time.
- Thread starter Cutlass
- Start date
The value of anything is what someone will pay for it. Supply and demand. If no one valued your labor, no one would pay for it, and you wouldn't have a job.
onejayhawk
Afflicted with reason
Slight confusion time.
https://research.stlouisfed.org/fred2/series/MBCURRCIR
This is the money printed by the Fed, and it's about 1/10th the total money supply, so that makes sense.
But this part confuses me.
https://research.stlouisfed.org/fred2/series/TREAST
How can the Fed have a trillion dollars more in T-Bills than they've issued in currency?
edit:They're using the maturity value, maybe?
https://research.stlouisfed.org/fred2/series/MBCURRCIR
This is the money printed by the Fed, and it's about 1/10th the total money supply, so that makes sense.
But this part confuses me.
https://research.stlouisfed.org/fred2/series/TREAST
How can the Fed have a trillion dollars more in T-Bills than they've issued in currency?
edit:They're using the maturity value, maybe?
Not being an accountant or banker, I can't read the balance sheet well enough to definitively answer all the details. But my best understanding is that the gist of the answer to your question is that the Fed is a lot more diversified than that. And so there are a lot more lines to the equation, and you're only looking at 2 of them.
This shows you more what the Fed's actual balance sheet looks like. http://www.federalreserve.gov/releases/h41/current/h41.htm
This shows you more what the Fed's actual balance sheet looks like. http://www.federalreserve.gov/releases/h41/current/h41.htm
Hygro
soundcloud.com/hygro/
Most of that is not printed paper but bank reserves. There's really no connection to the amount of bank reserves the banking system holds and the amount of treasuries the Fed holds.
It gets confusing.
Their reserves are essentially money taken out of circulation. Whereas the debt-paper they hold is money put into circulation.
Ostensibly, shouldn't the reserves be shown as a liability? And the debt-paper be an asset?
Their reserves are essentially money taken out of circulation. Whereas the debt-paper they hold is money put into circulation.
Ostensibly, shouldn't the reserves be shown as a liability? And the debt-paper be an asset?
Hygro
soundcloud.com/hygro/
The reserves are a liability of the private banks. The treasuries are assets of the central banks.
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