According to my economist friend, it has gone nowhere and it is that lack of movement that is problematic.
"Some numbers: The money supply is between 4 and 11 trillion depending on which definition of liquidity is used. Of that, $1.8 trillion is in cash that circulates outside the Fed. About 60% of it, by most estimates, has found its way abroad to be used instead of local currencies because people like dollars. There is some also held in paper in central banks around the world, though most of these international reserves tend to be electronic. There is some cash in the vault of banks to take care of the needs of their customers and then there is some held in our pockets. In fact, there have been reports that people these days are hoarding cash--typical behavior during times of uncertainty. With the exception of people hoarding cash, there has not been a big change in the proportions of who holds cash." The same amount of money is in the system, it is mostly just static, sitting in whatever account it was last in. The majority of that static money is in the accounts of the rich and giant corporations. What money is still circulating is mostly a drain from the accounts like my checking account to cash in pocket to cash drawer at the grocery. davew On Tue, May 26, 2020, at 5:56 PM, Robert J. Cordingley wrote: > Meanwhile, during this pandemic/economic crisis, where has all the money > gone? The people laid off don't have it, their employers don't have, > their laid off customers don't have it. Landlords and mortgage holders > probably don't have it because their clients are not making the payments > like they used to. Farmers don't have it - sales are down. The city > doesn't have it. The State doesn't have it, its budget is in tatters. > Where did it go? I'm not trying to be funny it's a serious question, any > thoughts or pointers to texts on economics that would explain what's > going on? I know I have less of it too, tho' we might be spending less > but it's too early to tell. I'm not really buying (sic) that it's just > stopped circulating that's made everyone poorer. If it's not circulating > it must be accumulating somewhere, where? Maybe the plutocrats have got it. > > -- > Cirrillian > Web Design & Development > Santa Fe, NM > http://cirrillian.com > 281-989-6272 (cell) > > > -- --- .-. . .-.. --- -.-. -.- ... -..-. .- .-. . -..-. - .... . -..-. > . ... ... . -. - .. .- .-.. -..-. .-- --- .-. -.- . .-. ... > FRIAM Applied Complexity Group listserv > Zoom Fridays 9:30a-12p Mtn GMT-6 bit.ly/virtualfriam > un/subscribe http://redfish.com/mailman/listinfo/friam_redfish.com > archives: http://friam.471366.n2.nabble.com/ > FRIAM-COMIC http://friam-comic.blogspot.com/ > -- --- .-. . .-.. --- -.-. -.- ... -..-. .- .-. . -..-. - .... . -..-. . ... ... . -. - .. .- .-.. -..-. .-- --- .-. -.- . .-. ... FRIAM Applied Complexity Group listserv Zoom Fridays 9:30a-12p Mtn GMT-6 bit.ly/virtualfriam un/subscribe http://redfish.com/mailman/listinfo/friam_redfish.com archives: http://friam.471366.n2.nabble.com/ FRIAM-COMIC http://friam-comic.blogspot.com/
