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Strategies & Market Trends : ahhaha's ahs
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To: deeno who wrote (22853)4/7/2013 9:54:47 PM
From: grusumRead Replies (1) of 24758
 
But how do dollars sitting around unused create value?

i don't know how the FED works, but i don't think reserves have value until they're lent out. lending them out at some interest rate, imbues the paper with money. in other words, money gives the currency value.

just supplying them does nothing, I don't think.

yes, that's what i think ahhaha meant when he said they don't have value until they get in someone's hands.
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