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To: AndyJackson
People can want all the cash they want

Wanting cash and holding a larger portion of your wealth as cash are two different things.

and the demand for cash is infinite.

Not even close. What yield do you currently earn on your cash?

The limit is how much cash there is to hold, and there is only one source for cash.

Excellent! Prove the Fed created $2 trillion more cash over the last few years. Should be easy, even if you are an ignorant jerk.

68 posted on 04/29/2008 11:31:41 AM PDT by Toddsterpatriot (Why are doom and gloomers, union members and liberals so bad at math?)
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To: Toddsterpatriot
Prove the Fed created $2 trillion more cash.

I will take the published statistics of the Federal Reserve for it. You apparently believe that it is all a fiction.

Wanting to hold more of one's assets in cash does not make more cash available.

If everyone holding non cash financial assets (stocks, bonds, real estate gold, etc.) in the US tomorrow decided instead they wanted to hold cash, the total value of all non cash assets would plummet to some fraction (less than 100%) of all cash currently on hand. It would not create an extra dime of cash not already in the banking system (less a certain amount of money currently stuffed in matresses that might come out of matresses and actually be put into the banking system).

Anything else would have to be generated through an increase in banking reserves.

But you know that already and are just being very very dense to try to show how very smart you are.

69 posted on 04/29/2008 11:46:49 AM PDT by AndyJackson
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