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Re: You are correct, Due. 

By: DueDillinger in CONSTITUTION | Recommend this post (1)
Wed, 06 Jun 12 5:12 PM | 48 view(s)
Boardmark this board | Constitutional Corner 		Msg. 18494 of 21975
(This msg. is a reply to 18493 by monkeytrots)
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That you (and most folks) quite naturally think of credit as money is a symptom of the messed-up economics of our times. Notice how the page you referenced stops short of explaining how the money supply does expand?

The nature of the fractional reserve banking system and the actions of the Federal Reserve is more than a bit arcane and as such are not very well understood. Here's a decent brief explanation of money supply mechanics.

http://www.ncpa.org/pub/ba611

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The above is a reply to the following message:
You are correct, Due.
By: monkeytrots in CONSTITUTION
Wed, 06 Jun 12 11:17 AM 		Msg. 18493 of 21975

Credit cards are commonly used to buy goods and services—are credit card transactions or credit card debt included in demand deposits or the money supply? If not, why doesn’t the definition of the money supply include them? .....

Answer is pretty thorough - but is just a more verbose rendition of your short reply, Due.

http://www.frbsf.org/education/activities/drecon/2005/0509.html

I am still going to have to chew on it - monkey digests slowly, as you know. Including on TMI - the degree of damage to the reactor core and containment building did NOT go un-noticed by the chattering primate.

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