If this occurs for every securities purchase, then in step 1 above there will be zero average ISA balance, and the only adjustment in April would occur because of different growth in Richmond Federal Reserve notes
than in the System as a whole.
According to the New York Times: "To many of the President's closest advisors the Aldrich-Vreeland Act, repealed when the Federal Reserve Act came into effect, provides the model scheme for the projected expansion of currency through Federal Reserve Notes
9 Total assets + TCO Liabilities absorbing reserves Federal Reserve notes
held by Treasury 0.
However, US Code, 31 USC 5103, establishes US coins and currency, including Federal Reserve notes
, as legal tender and has been used to debase the currency ever since - the way Gresham's Law works: bad (or debased) money drives out good (the kind with little difference between its nominal and commodity values).
Nobody believes his story until he pulls out the wad of federal reserve notes
and proudly states that he ain't sharing shit with anyone, especially not J-Wak.
I agree with his definition of money--a medium of exchange, a store of value, and a unit of value--but our Federal Reserve Notes
fail on two of these accounts.
The 12 regional banks together reported incomes before distribution totaling just over $23 billion in 2003, with the bulk of the distribution going to the Treasury as interest on Federal Reserve Notes
Second, the government of the United States benefits from the seignorage, which we obtain from having more than $400 billion of Federal Reserve notes
held by non-citizens.
That the loss of public confidence is due to the Detroit crisis is evident in the distribution of the changes in Federal Reserve notes
in circulation in each Federal Reserve district.
Even after these gold losses, however, the gold-reserve ratio (against Federal Reserve notes
and deposits) was still at least 50 percent above the legally required minimum.
If people hold less coin and currency, the Treasury will lose seigniorage from the coins it mints as well as the income associated with Federal Reserve notes
The Federal Reserve Banks also were required to hold 40% in gold reserves against the total of Federal Reserve Notes
Nonetheless, Roosevelt proceeded to promote an exceedingly unsound currency--with the seizure of most Americans' gold, devaluation of gold coinage, removal of domestic redemption of Federal Reserve Notes
in gold, and the nullification of gold clauses in both public and private contracts (Vieira 2002: 867-1235).
In 1970, only about 10 percent of the total value of Federal Reserve notes
outstanding was held overseas, but more recent estimates put it at over 45 percent, mostly in the form of $50s and $100s.