In 1910, there was $3,148,700,000 in circulation in the United States. In 2000, there was $571,121,194,344 in circulation in the United States. The Federal Reserve prints it, and then "pays it out" to banks and lending institutions. Is this a Federal give away? Should I start a bank? It cannot be a loan, because a loan would have to be paid back, with interest, from the current pool of money. That would shrink the supply, not expand it. How does this cash get into circulation without having to be returned to the Feds? I have seen numerous answers about this, but none seem to directly address this question. Who has been paid this 565 billion dollars over the last 90 years in order to get this cash into circulation?
2007-11-06
04:57:01
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6 answers
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asked by
wizard8100@sbcglobal.net
5
in
Government