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The 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 outsta
by tome 9y ago
The 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!