In reply to R C Macaulay's message of Fri, 28 Nov 2008 15:59:58 -0600: Hi, [snip] >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
...but that *is* effectively the question I asked (and you didn't answer). Presumably, old notes get taken out of circulation, but by whom, and does the value of the old notes get deducted from anyone's "debt"? > > >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]> > Regards, Robin van Spaandonk <[EMAIL PROTECTED]>
