🚀 go-pugleaf

kevin@drogges.tti.com (Kevin Carothers) writes:

>In article <1993Jan25.201022.18348@Princeton.EDU> nfs@volkl (Norbert Schlenker) writes:
>%In article <1993Jan25.103542.7525@hemlock.cray.com> rja@mahogany126.cray.com (Russ Anderson) writes:
>%>
>%>In June 1992, M1 had grown 11% over the previous 12 months (Source: 
>%>Federal Reserve Board).  The 3 month average was 6% (indicating a 
>%>slowdown in the rate).
>%
>%In December 1992, M1 had grown 15% over the previous 12 months (same
>%source).  The actual increase was $125 billion and it was ALL currency.
>%Federal Reserve Notes.  All of it.  Currency outstanding increased by
>%50% in one year.
>%
>%Now I'm puzzled, because I simply do not understand what people are
>%doing with all this currency.  Did we ship it all to Colombia?  Does
>%half the country have a couple of thousand dollars stuffed (literally)
>%under the mattress?  Are people that scared?  (I am, but I certainly
>%don't get that impression from others while walking around.)
>%
>%Any economists care to guess?  I've set followups to sci.econ in hopes
>%of some reasonable speculation.
> 
> I am by NO means an economist, but I'll answer anyway :)

> EuroDollars and EastDollars.
> Believe it or not, one of the chief exports of the US is... dollars!

> When a Japanese businessman buys a Korean freighter, the transaction is
> (usually) undertaken in dollars. When a Dutch oil freighter loads 
> a tanker full of oil in the  mideast, the transaction is undertaken
> in dollars. Ther list goes on and on and on...

But why do it with currency? I don't think a Dutch oil freighter captain is
going to pay with a stack of green. $1M in $20's weighs several hundred 
pounds...

As another post showed, the increase in cash, as described above, may not 
have even occurred.

Bill Goffe
bgoffe@seq.uncwil.edu