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To: bart13 who wrote (86540)1/28/2012 3:10:53 PM
From: carranza2  Read Replies (1) | Respond to of 220634
 
Excess reserves are daunting numbers for money which is not circulating.

I call it inflation in a can. I believe this is where the next round of stimulus will come from, not from QE. I should think getting the money into circulation is something that could be easily done as the Fed could simply put limits on the amounts it will allow as excess.

Perhaps given the systemic imponderables, the Fed thinks it best that excess reserves stay high....just in case.