Where does the excess money go? Does it just evaporate?
Why not? It was created out of thin air!
My understanding is that they bought assets with fake money and are now selling them to get real money.
That is exactly what happens to it.
“Where does the excess money go? Does it just evaporate?”
Yes & No, money is fluid and moves around....nobody owns it.
It also depends who gets it.
People that never had any money before tend to jam it into goods and services.
People with a lot of capital tend to look for good investments so their money sits longer.(Wherever they put it.... stocks, bonds, real estate, etc usually turns out well for them)
Historically, money evaporates when bankers raise interest rates and cut the money supply.
It causes pain but if they don’t do it the “speculative rot” destroys producers.
Right now, I’m looking at one dollar bill with George Washington on it.
I’m glad there aren’t 2 more zeros on it. Imagine these monetary units:
$100 Washington
$200 Jefferson
$500 Lincoln
$1000 Hamilton
$2000 Jackson
$5000 Grant
$10000 Franklin
Money has to make sense, what I presented are monetary denominations that would be an economic & psychological disaster.