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Old 11-30-2011, 11:42 AM   #977
Muta
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Quote:
Originally Posted by valo403 View Post
The amount going out really doesn't matter, you have to look at what goes out as well as what comes back in. $8 trillion going out is a huge number, but if $9 trillion came back in what's the problem?

It seems that the typical approach when discussing anything around this issue is to latch onto one small piece of a massive puzzle and pretend like that's the entire story.
Where is that $9 trillion figure coming from?

Also, does the Federal Reserve just create money from nothing for the purposes of lending? Or is there a standard to base the money supply against?
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