Tuesday, September 13, 2011

200 Years To Print Paper Money of US 9.0 Trillion

This review is from:
The Death of Money:
How the Electronic Economy Has Destablized the World's Markets and Created Financial Chaos (Paperback) -Joel Kurtzman 1994
This book was written 11 years ago, so some of its information is dated, but its basic premise has only become stronger: that the nature of money has changed from a tangible medium of exchange (i.e., cash) into a complex and chaotic system of computerized balance sheets and numerical flows.

The Federal Reserve estimates today that the entire worldwide supply of US money is currently about 10 trillion dollars ($10,000,000,000,000). This includes cash, savings accounts, checking accounts, money market funds, and other kinds of bank deposits.

But only 700 billion (or 7%) of these dollars are paper cash dollars circulating outside of bank vaults, of the sort you can carry in your wallet. If everybody wanted to cash out their bank accounts at the same time, there simply wouldn't be enough paper dollars to go around. Banks would have to close temporarily while the Federal Reserve printed more cash.

I don't know how long it would take to print 9 trillion more paper dollars ... let's see, the Bureau of Engraving and Printing typically prints $40 billion per year, so at current production levels it would take over 200 years to print all the cash required if everybody demanded all their cash at the same time.

The kind of money you can hold in your hand is pretty much obsolete.

....viva Dinar and Dirham as anti-dote.....to the paper manipulated money,not even cash.

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