Re: Printing Money

[Bruce McFarling <brmcf@xxxxxxxxxxxxxx>]

It can go the other way around. Spending the money,
if some of the new money stays in circulation as
Currency, may result in new currency being printed.
The Currency still is represntative of Reserves
not the other way around, which is why its a
'Federal Reserve Note' (Our correspondents not from
the U.S. can fill us in on the details for other
Reserve based monetary systems, of course).

Bruce McFarling, Knoxville
brmcf@xxxxxxxxxxxxxx


On Fri, 24 Feb 1995, John Gelles wrote:

> begin Gelles:
>
> 	Is not the "SPENDING" of the printed money (or using up
> 	of extremely low interest credit) the proximate cause
> 	of the dangerous inflation?
>