from Jesse’s Café Américain:
“So that the question is: Would there be any advantage, at this particular stage, in going back to the gold standard? And the answer is: I don’t think so, because we’re acting as though we were there.
So I think central banking, I believe, has learned the dangers of fiat money, and I think, as a consequence of that, we’ve behaved as though there are, indeed, real reserves underneath the system.” – Alan Greenspan, 20 July 2005
Yes that’s right. The Fed is NOT printing money. It is ‘retiring Treasuries’ and ‘issuing Reserves.’
And everyone knows that Reserves are benign, if not almost meaningless accounting entities.
Banks just like to collect them. Like Pokémon cards.
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