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Old 02-16-2007, 05:23 PM
BCPVP BCPVP is offline
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Join Date: Jan 2005
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Default Re: Could Someone Please Explain the Money Supply?

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1) Consistently print more money than we destroy (on a federal level)

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Yes

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2) If so, who gets the benefit of this extra money printed?

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The first users who receive the money before prices increase

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3) How do we keep track of the amount of digital money since most money now is not kept in hard currency?

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Not sure

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4) How do we find out how much money was created, either through printing or other creation, in the past year? Further, how do we know how much has been destroyed?

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Not sure. Mints might know.

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5) Why is our money not backed by something of value? Why did we decide to get off gold and silver standards? Doesn't this make more sense?

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This is going to get you a variety of answers. Many believe that a fiat currency facilitates government spending, since they are not limited to a fixed amount of money. A video from the Austrian perspective on the topic.

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6) What is it that is currently backing our currency?

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The government's word that "we're good for it".
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