Robin ,
At the risk of falsely claiming fraud, As any Columbian drug cartel can
explain, round bailing US money and storing the currency in a warehouse in
the jungle is a poor way to riches.. on the otherhand, the Fed Reserve loves
it. The Fed estimates the drug dealers take 60-70 billion in cash out of
circulation each year.. which gives the FED incentive to have 60-70 billion
more printed each year. Add to this the counterfeit money printed in the
middle east, china, russia and clandestine print shops off campus in
california and the cash in hand may run from quaint to queer.
The question to ask is. where does the rest of the money go besides drug
cartels?
Richard
Wiki (http://en.wikipedia.org/wiki/Federal_Reserve_Note) says:-
"Federal Reserve Notes are printed by the Bureau of Engraving and Printing
(BEP), a bureau of the Department of the Treasury.[3] The Federal Reserve
Banks
pay the BEP not only the cost of printing the notes (about 4ยข a note), but
to
circulate the note as new currency rather than merely replacing worn notes,
they
must pledge collateral for the face value, primarily in Federal securities."
Could someone explain to me how the Federal Reserve Banks get "Federal
securities" to "pledge", in the first place, and also what happens
(financially)
when old worn notes are taken out of circulation, and who does that.
Regards,
Robin van Spaandonk <[EMAIL PROTECTED]>
