How much money has the Federal Reserve created since 1913 and where did it go?

One thing I haven't been able to come to grips with yet is where did all the money go?

The federal reserve and the U.S. treasury must have created so much money since 1913 that they could pay off the national debt by now.

Let's say that they loaned it to the bigger banks and the bigger banks increased the money supply by a factor of x10. THen let's say the bigger banks loaned that money to the smaller banks and the smaller banks loaned it out to consumers by a factor of x10.

For every dollar that the Federal Reserve and U.S. treasury printed up there would be X100 as much money created.

So if the treasury has printed up 10 Trillion (This is a guess - it does corespond to the the national debt though) since 1913 then there should be over 1 Quadrillion dollars in existance by now.

So where did it all go?

And is this new $700 + $150 Billion printing just a ruse to inject $85 Trillion (X100 of what was created) into the hands of consumers?

Note: They raised the amount of the bailout to $850 Billion.




[edit on 5-10-2008 by In nothing we trust]

From what I understand, only the central banks can create money, per se.

Having said that, I read somewhere yesterday that all the gold ever mined is only worth half of one years US GDP. So there isn't enough mined gold in existance to back all the money in the US, let alone the world. So essentially, it's only worth something because we're told it is.

Originally posted by stumason
So essentially, it's only worth something because we're told it is.

I think the money is only worth what the people are willing to believe that it's worth.

Watch the informative video series at www.chrismartenson.com for a very comprehensive answer to your question.

Short - sweet - to the point video about money.


GOLD - MONEY







Got it! lol

...taps...








[edit on 5-10-2008 by silo13]