Topic: Profits with debasement (Read 785 times)
What i meant was that CPI is not accurate because it is grossly understated. If you move that up to 10%, does that number seem significant now? Also, whatever the figure is, 10x more is made by the private banking system which multiplies that new money by many times via FRB.
You are assuming CPI = money supply increase
They are very related, so I am sure my estimation is good.
But more accurate would be to know exactly how much extra of the currency is put in circulation, if that is what we want to know.
But I'm positive we would get pretty much the same figure.
It is not as much as I supposed it was.
It is nothing compared to the GDP and taxes collection of the corresponding countries.
You are assuming CPI = money supply increase
At the end of 2010, there was about $1.2 trillion US Dollars (USD) worth of euros in circulation, the highest circulating value of any world currency.
As the inflation in the Euro Area has been about 2-3%, that means the European Central Bank is profiting about $36 billion a year with coinage debasement.
To be honest it doesn't seem much, comparing to what States collect from taxes.
As the inflation in the Euro Area has been about 2-3%, that means the European Central Bank is profiting about $36 billion a year with coinage debasement.
To be honest it doesn't seem much, comparing to what States collect from taxes.
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