| Subject: | Re: [socialcredit] Money supply etc. | | Date: | Friday, January 12, 2007 10:25:51 (+1030) | | From: | John Hermann <hermann @............au>
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| In reply to: | Message 4453 (written by John G Rawson) |
At 07:32 PM 11/01/2007 +0000, John Rawson wrote:
>Quickly available data for NZ shows that the proportions of bank deposits
>to total M1 in NZ in the past were: 1935 - 56%, 1945 - 65%, 1955 -
>75%. The present is about 97%.
John, this statement makes no sense. Bank deposits as a whole must always
exceed M1. That's because within a fractional reserve financial system most
bank deposits are interest-bearing (e.g. term deposits, savings deposits),
which are not part of the M1 aggregate.
-- John Hermann
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