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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: energyplay who wrote (5494)	4/11/2006 3:17:49 PM
From: ackerrj	Read Replies (2) \| Respond to of 219609

>>Just paper currency about 800 Billion divided by 261 million ounces. Not demand accounts. If B borrows from A and C borrows from B and D borrows from C, we can have large numbers of demand accounts matched with an equal number of debts. Computer processing, financial derivaties, etc. have increased the numbers of accounts and nominal totals without a net increase in actual new money, which comes from the FED or buy new lending. I think this (demand accounts) is percceived by owners of same as real spendable money... How much cash ($US) do you have lying around the house...? If your like most folks, probably the pocket change from last night, and a few bucks to go to the gym. Most 'cash' is in the bank... in my view, thats should be counted. An arguement can be made that in a crunch, the FDIC backed by the Fed would print enough money to replenish lost accounts up to $100k. However with this administration (post Katrina) you never know <grin!>. TJ's comments about all the foreign debt owed are valid. China and Japan (and the others) certainly think of them as money, or at least claims on money.