a lot of ‘i dont knows’ it seems
i was responding to an earlier statement about an insufficient quantity of gold needed to operate a vast complex economy that exists today.
as for the 250 million ounces claim…right...i dont know if that is all federal reserve controlled or managed according to congressional/us treasury dictate or if it just sits around and looks pretty. or why gold would even figure into any federal reserve activities - if the pumping mechanism that i read about is true…the gold would seem to have an almost nonexistent effect on money and credit inflation.
the link you posted mentioned, if true, states there are 800 billion or so of federal reserve assets. i dont have the financial background to understand that information.
in an earlier discussion with a poster named jimmy at mises forums i was told this
" So normally if the Fed increases the monetary base (not typically notes and coins but more commonly by increasing the total quantity of reserves in the system held on account with the Fed itself) by 100 billion you might expect an actual expansion of the overall money supply of maybe 1 trillion (in a very simple example)."
found here the actual procedure of creating money (alt thread)
if the federal reserve actually conjured up 800 billion or so to get commercial bank assets…maybe an $8 trillion or so money/credit supply would make sense. that is what i was told.