Quote:
Originally Posted by photon
Wouldn't it just be by making more money available? I don't think the sum total of all money in the US "system" (whatever system means) is $800B, just the amount of physical dollar bills.
The US GDP is $13 trillion.
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It is inserting $700B isn't the system, but I just don't understand the issue and its very complex. Something to do with the value of assets and debt being leveraged, and credit being inserted and certain debt writeoffs and whatnot. I also don't understand how that changes the worth of a $ by inserting that, because there was value lost by the value of the USD falling.
One thing is for sure - they arn't going to print $700B, cash. That would break down the entire currency system in the USA. I know in circulation, there is about $800B in cash.