Hacker Newsnew | past | comments | ask | show | jobs | submitlogin

So you are saying the money pool expands at the rate in which the Federal Reserve spends money, and contracts at the rate it loans money?


No, I wanted to point out that the total amount of debt can be larger than the total amount of (physical) money.


I realize that the amount of debt can be larger than the total amount of money. In fact given every dollar in existence is on loan from the federal reserve the total amount of debt will always be higher than the total number of dollars in the system by design. The question is, how does the system not implode under the massive amount of debt that is ever increasing?


I found the following article: http://hiwaay.net/~becraft/FRS-myth.htm#hd25

Apparently the Fed's revenue is not 'destroyed' but transferred to the Treasury.




Guidelines | FAQ | Lists | API | Security | Legal | Apply to YC | Contact

Search: