I noticed a few times in this thread people have said there are only $3trillion is existence... maybe printed dollar bills but far more than $3trillion dollars exist. Also, 60% of the printed dollars aren't in the US, they are held over seas as reserve currency.
The US is $17trillion dollars in debt, so there is $17trillion for a start. Then add on to that the money on the balance sheets of the banks and the money in holding over seas... there are $100's of trillion's of dollars that exist and the FED is printing an extra $85billion per month! You also need to take into consideration that the FED only prints 8% of the money in the US, 92% of the dollars that are printed, are created by the banks.
Then add into that the derivative market which is valued at $1.2quadrillion! That's Quad... with a Q!
The US is $17trillion dollars in debt, so there is $17trillion for a start. Then add on to that the money on the balance sheets of the banks and the money in holding over seas... there are $100's of trillion's of dollars that exist and the FED is printing an extra $85billion per month! You also need to take into consideration that the FED only prints 8% of the money in the US, 92% of the dollars that are printed, are created by the banks.
Then add into that the derivative market which is valued at $1.2quadrillion! That's Quad... with a Q!
Exactly, there's boatloads of dollars, printed dollars mean absolutely nothing, so many parties can just legally create dollars out of thin air they're basically worthless. Go to any bank and ask for a loan and if they agree to lend you money, that money is created out of nothing, just the very fact that you promise to pay them 'back' 'their' money, creates that money into existence. That's how banks work, and that's the main reason I believe in bitcoins, because money printing would become impossible and wealth would theoretically be distributed more fairly.
