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<p>[QUOTE="krispy, post: 1366014, member: 19065"]Well, if this note were not just meant as a joke and more than likely a misunderstanding of the Federal Reserve banking system, were it real, it could fall into the Fed's concept of <i>elastic currency</i>. Not only can they expand the money supply but the Federal Reserve can also contract it. This function is in place to prevent bank runs to deal with ever changing economic conditions. Jokes like these notes only focus on the bad side of what it is perceived to mean and tend to overlook how the public and institutions may be protected in such a crisis. Just remember, that note is a fantasy note. </p><p><br /></p><p>While Zimbabwe more recently dealt with hyper-inflation, and a 100-trillion dollar bill was printed (the largest denomination EVER printed for use), it was still only worth about $5 (USD) at the time (in 2008), a value which was rapidly changing as they went through their economic crisis. After that nation abandoned their currency, where did they turn, to the U.S. dollar and South African Rand, and all transactions began in those more stable currencies.[/QUOTE]</p><p><br /></p>
[QUOTE="krispy, post: 1366014, member: 19065"]Well, if this note were not just meant as a joke and more than likely a misunderstanding of the Federal Reserve banking system, were it real, it could fall into the Fed's concept of [I]elastic currency[/I]. Not only can they expand the money supply but the Federal Reserve can also contract it. This function is in place to prevent bank runs to deal with ever changing economic conditions. Jokes like these notes only focus on the bad side of what it is perceived to mean and tend to overlook how the public and institutions may be protected in such a crisis. Just remember, that note is a fantasy note. While Zimbabwe more recently dealt with hyper-inflation, and a 100-trillion dollar bill was printed (the largest denomination EVER printed for use), it was still only worth about $5 (USD) at the time (in 2008), a value which was rapidly changing as they went through their economic crisis. After that nation abandoned their currency, where did they turn, to the U.S. dollar and South African Rand, and all transactions began in those more stable currencies.[/QUOTE]
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