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The rest of the money is in bankaccounts of various types, and the Federal Reserve has tracked these funds in three different values known as the M1, M2 and M3 money supplies. (M3 has since been dropped. More on that below.)
M1 represents all of the currency in the M0 money supply, plus all of the money held in checking accounts and other checkable accounts, as well as all of the money in travelers' checks. In June 2013, the M1 money supply for U.S. dollars equaled about $2.5 trillion [source: Federal Reserve].
M2 is the M1 supply, plus all of the money held in money market funds, savings accounts and CDs under $100,000. In June 2013, the M2 money supply was about $10.5 trillion [source: Federal Reserve].
M3 is M2 plus larger CDs. As of March 2006, the Fed stopped tracking the M3 money stock as an economic indicator because it felt it did not add any information on economic activity that was not already available from M2 [sources: Federal Reserve, Federal Reserve Bank of New York].
All told, anyone looking for all of the U.S. dollars in the world in July 2013 could expect to find approximately $10.5 trillion in existence, using the M2 money supply definition. If you just want to count actual notes and coins, there are about U.S. $1.2 trillion floating around the globe.
As of July 2013, currency in circulation—that is, U.S. coins and paper currency in the hands of the public—totaled about $1.2 trillion dollars. The amount of cash in circulation has risen rapidly in recent decades and much of the increase has been caused by demand from abroad.
As of the first quarter of 2010, the Federal Reserve estimated that total public and private debt owed by American households, businesses, and government totaled $50 trillion, or roughly $175,000 per American and 3.5 times GDP.
During the Civil War (1861-1865), President Lincoln needed money to finance the War from the North. The Bankers were going to charge him 24% to 36% interest. Lincoln was horrified and went away greatly distressed, for he was a man of principle and would not think of plunging his beloved country into a debt that the country would find impossible to pay back.
Eventually President Lincoln was advised to get Congress to pass a law authorizing the printing of full legal tender Treasury notes to pay for the War effort. Lincoln recognized the great benefits of this issue. At one point he wrote:
"(we) gave the people of this Republic the greatest blessing they have ever had – their own paper money to pay their own debts..."
The Treasury notes were printed with green ink on the back, so the people called them "Greenbacks".
Lincoln printed 400 million dollars worth of Greenbacks (the exact amount being $449,338,902), money that he delegated to be created, a debt-free and interest-free money to finance the War. It served as legal tender for all debts, public and private. He printed it, paid it to the soldiers, to the U.S. Civil Service employees, and bought supplies for war.
Shortly after that happened, The London Times printed the following: "If that mischievous financial policy, which had its origin in the North American Republic, should become indurated down to a fixture, then that Government will furnish its own money without cost. It will pay off debts and be without a debt. It will have all the money necessary to carry on its commerce. It will become prosperous beyond precedent in the history of the civilized governments of the world. The brains and the wealth of all countries will go to North America. That government must be destroyed, or it will destroy every monarchy on the globe."
originally posted by: seeker1963
a reply to: dfnj2015
What does Trump have to do with the World Monetary System?
Eventually President Lincoln was advised to get Congress to pass a law authorizing the printing of full legal tender Treasury notes to pay for the War effort.
Lincoln printed 400 million dollars worth of Greenbacks (the exact amount being $449,338,902), money that he delegated
to be created, a debt-free and interest-free money to finance the War. It served as legal tender for all debts, public and private.
originally posted by: SouthernForkway26
a reply to: dfnj2015
JFK tried to bring back real money. Look up executive order 11110. It was to return the currency back to silver certificates but he was assasinated. LBJ immediately reversed this executive order and the Federal Reserve retained its control. Trump is very rich and doesn't want to be killed so he won't be attempting any major disruption of the Federal Reserve.
The way out of the debt-backed system will come from the rise of cryptocurrencies. Soon the monopolistic control of the monetary system the FED has will erode as more wealth is stored into cryptocurrencies instead of Federal Reserve and other central bank notes. Competition amongst currencies will determine the long term winners and losers, but one loser for sure will be the central banking system.
The way out of the debt-backed system will come from the rise of cryptocurrencies.
during the transition period under President Kennedy's plan to eliminate Silver Certificates and use Federal Reserve Notes
The text that had been added to E.O. 10289 by E.O. 11110 remained on the books until President Ronald Reagan issued Executive Order 12608 on September 9, 1987 as part of a general clean-up of executive orders. Executive Order 12608 revoked subparagraph (j) of paragraph 1 of Executive Order 10289, as amended by Executive Order 11110. Thus, E.O. 12608 specifically revoked the relevant portion of E.O. 10289 that had been added by E.O. 11110. This action effectively revoked E.O. 11110. By this time, however, the remaining legislative authority behind E.O. 11110 had been repealed by Congress when Pub.L. 97–258 was passed in 1982.
originally posted by: seasonal
a reply to: dfnj2015
Fractional reserve lending creates the principle but not the interest.
The system is designed for never ending expansion and inflation. It is not a system that can be sustainable in a limited world.