Money supply is fake anyway

Thomas Grant Edwards tedwards at Glue.umd.edu
Thu Apr 11 06:43:10 PDT 1996



>   Garfinkel described it like this: "My name is Agent
>   Jenkins. I'm an investigator with the secret service,
>   working on a counterfeiting case. And it's tough. Last
>   year, my office got a priority call from an economist at
>   Stanford. The economist was looking at something called the
>   money supply and velocity and both were increasing a little
>   too fast. They just didn't add up. The economist finally
>   figured an organisation was printing its own electronic
>   money -- just like the US government does.

Banks "invent" money on a daily basis.  You would have to counterfeit a 
great deal of currency (probably more than it out there right not) before 
you would start making a serious impact on the money supply. 

That said, enough counterfeit money may change the way people value 
money, and may cause inflation.

-Thomas







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