There Will Be (Hyper)Inflation
posted by Josiah Garber on April 7, 2009
in Economics, Politics
by Thorstein Polleit
Increasing “Excess Reserves”
The demise of fiat-money regimes around the world has become unmistakable. They can only be kept alive by central banks creating ever greater amounts of base money and governments underwriting commercial banks’ liabilities.
The US Federal Reserve, for instance, increased the stock of the monetary base — which includes banks’ demand deposits held with the Fed, plus coins and notes in circulation — from $870.9 billion in August 2008 to $1735.3 billion in January 2009.