Monday, December 8, 2008
Weekly Monetary Base and Reserve Balance Update
Both the monetery base and bank reserves hit new highs in the past week.
$1.51 Trillion, up from $886 billion on September 17
Reerve Balances at Federal Reserve Banks
$634 billion, up from $7.9 billion on September 10!
This is the money that will be used to buy Treasuries.
The money to buy government securities and pay taxes comes from government spending!! The media and nearly all mainstream economists don't understand this.
Foreigners do not LEND us money! Government spending funds the savings of foreigners!!!