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There are in fact less than $1tn in circulation as currency. Most of it is in bank accounts or money titles, depending on your definition of 'money'. Currency
by iwwr 16y ago
There are in fact less than $1tn in circulation as currency. Most of it is in bank accounts or money titles, depending on your definition of 'money'.
Currency in circulation: http://research.stlouisfed.org/fred2/series/CURRENCY http://research.stlouisfed.org/fred2/series/CURRENCY
M1: http://research.stlouisfed.org/fred2/series/M1 http://research.stlouisfed.org/fred2/series/M1
M2: http://research.stlouisfed.org/fred2/series/M2 http://research.stlouisfed.org/fred2/series/M2
MZM: http://research.stlouisfed.org/fred2/series/MZM http://research.stlouisfed.org/fred2/series/MZM
- Samuel_Michon 16y agoThat's exactly what I was thinking upon reading the article. When talking about billions of dollars of deficits or stimuli, it's not cash or even gold equivalent we're talking about. It's virtual, based on a gentleman's agreement between banks. Most of the money is created by banks, when people like you and me come to them for a loan or a mortgage. So the conclusion of the article is false: "the next time you hear someone toss around the phrase "trillion dollars"... [1.5 acres of double-stacked pallets of $100 dollar bills] is what they're talking about."
- Encosia 16y agoThat's interesting. That puts hard currency at about one half of November's $1.8tn M1 estimate. I've always assumed that currency represented a much larger portion of the M1.