The increasingly draconian policies of the president have driven the people of Argentina to protect themselves from inflation, too bad they are seeking that protection in the US dollar.
On a related note, I was listening to a Mises lecture a while a go when some very disturbing information crossed my ears. Anywhere from 60 to 80% of all US dollars are not held in the country. Now this 60 to 80% isn't counting the Central banks, they don't hold dollars themselves just dollar denominated assets such as treasury bills, that 60 to 80% of actual dollar bills are held by people and companies. A very sobering thought, as unlike the central banks which have a vested interest to keep the system going as long as possible, foreign people will dump their dollars the moment they realize how devalued they really are. But considering that all the other major nations are racing to the bottom, we may still have some time, unless those people realize that gold and silver would be far smarter bests for protection from inflation.
Thursday, February 28, 2013
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About Me
- Cogitans Iuvenis
- Seattle resident whose real name is Kevin Daniels. This blog covers the following topics, libertarian philosophy, realpolitik, western culture, history and the pursuit of truth from the perspective of a libertarian traditionalist.
I wonder how we could determine the total amount of money in our economy. Is that even possible?
ReplyDeleteThat's a good question. Even the Fed admits that would be impossible to get 100% accurate count of all the cash or coin dollars not held in the bank.
Deletehttp://www.federalreserve.gov/pubs/bulletin/1996/1096lead.pdf
I'm looking at the Money supply statistics but it only makes the question more unclear. M0 is physical currency out, M1 is M0 plus travlers checks, demand deposists, and other checkable deposits. And it goes on and on.
Trading economics shows the M0 supply at just under 3 trillion.
http://www.tradingeconomics.com/united-states/money-supply-m0
So the question is the 60 to 80% of that estimated 2.7 trillion or is that 2.7 trillion the 40 to 20% of dollars held in America?