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<p>[QUOTE=&quot;fatima, post: 1314652, member: 22143&quot;]^That long cut and paste can be summarized into just one sentence:&nbsp;&nbsp; Money sitting in Federal Reserve accounts vs money sitting in commercial bank accounts.&nbsp; Nothing more, nothing less.&nbsp; </p><p><br /></p><p>For the purposes of this discussion, whether the money is sitting in a Federal Reserve account or a commercial bank account, the distinction is meaningless.&nbsp; All of it is USD and thus by definition since 1971 are Federal Reserve Dollars.&nbsp;&nbsp; The Federal Reserve does make the distinction between base money and commercial money because the Federal Reserve act requires the FR to carry this on its balance sheet to be balanced out by central bank assets. (namely US Gold Certificates valued at $42/ounce &amp; US Treasury Notes).&nbsp; &nbsp;&nbsp; </p><p><br /></p><p>It should be noted that the money supply reported by the Federal Reserve, M1 &amp; M2, only includes the commercial bank account money.&nbsp; It never includes base money because it doesn&#039;t circulate.[/QUOTE]</p><p><br /></p>

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