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M2 includes "I owe yous" by banks. But USDTs are only the "I owe yous" by the emitter. So a better comparison might be the federal reserve balance sheet: https
by TekMol 6y ago
M2 includes "I owe yous" by banks. But USDTs are only the "I owe yous" by the emitter. So a better comparison might be the federal reserve balance sheet:
https://www.federalreserve.gov/monetarypolicy/bst_recenttrends.htm https://www.federalreserve.gov/monetarypolicy/bst_recenttren...
43% of these "original emitter" dollars have been printed in 2020.
- qeternity 6y agoNo it’s not a better comparison as banks genuinely create money by lending. This is the whole point of FRB. You can cherry pick your numbers but it doesn’t change the fact that Tether’s reserves likely don’t exist in the way they’re supposed to (cash and cash equivalents).
- incrudible 6y agoI don't think it's a better comparison when it comes to how much money is "printed". That's M1, not M2. Fractional reserve banking don't print money, it increases (and decreases) the money supply through lending. Despite perhaps not being backed properly, Tether is not supposed to be fractional reserve, nor is Tether created through debt.
- qeternity 6y ago> Fractional reserve banking don't print money, it increases (and decreases) the money supply through lending. Technically the Fed does the same. They lend money to the Treasury by buying Treasuries (or more recently, to other people by buying IG credit). When the Fed prints money, in theory it’s offset by a liability somewhere. They are the same. M2 is what matters.