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Are you sure? The quickest sources I could find claim it's the other way by a significant margin. > There was approximately $1.56 trillion in circulation as o
by tome 9y ago
Are you sure? The quickest sources I could find claim it's the other way by a significant margin.
> There was approximately $1.56 trillion in circulation as of July 12, 2017, of which $1.52 trillion was in Federal Reserve notes.
https://www.federalreserve.gov/faqs/currency_12773.htm https://www.federalreserve.gov/faqs/currency_12773.htm
> In FY 2017, total US government revenue, federal, state, and local, is “guesstimated” to be $6.56 trillion
http://www.usgovernmentrevenue.com/total http://www.usgovernmentrevenue.com/total
- icebraining 9y agoThe total USD value is much larger than bank notes. Money in bank accounts and equivalent services is in this context indistinguishable from notes.
- tome 9y agoThe reserve requirements on balances on more than $115.1 million are 10%. That means with $1.56 trillion outstanding you're looking at a ballpark amount outstanding of $15 trillion in bank deposits. That's still not "much greater" than the $6 trillion annual tax revenue. https://www.federalreserve.gov/monetarypolicy/reservereq.htm https://www.federalreserve.gov/monetarypolicy/reservereq.htm
- deleted 9y ago[deleted]
- icebraining 9y agoFrom your link: "Depository institutions must hold reserves in the form of vault cash or deposits with Federal Reserve Banks." Current balance of federal bank deposits is ~$2.3T: https://www.federalreserve.gov/releases/h41/current/ https://www.federalreserve.gov/releases/h41/current/
- tome 9y agoInteresting. I'm not sure how to read that balance sheet. For the sake of argument let's say that there's $2.3T is federal bank deposits and $1.5T cash in circulation. If it's all used as reserve balances then that's a total of $38T in bank deposits outstanding. $6T taxing power a year is still not small compared to this!