http://www.economagic.com/em-cgi/charter.exe/fedstl/m1sl
this link shows a chart that indicates that m1, since 1990, has about doubled.
about a 5% increase per year.
i understand m1 to be the AMB plus (as AMB, currency iow, makes its way through the banking system) ‘fiduciary media’.
many posts at mises.org have claimed a gold ‘production’ rate of about 3% per year…im not sure what percent of that 3% means gold going to money or if thats what the posts i have read meant.
also, i am not sure about …are there other inflationary forces at work within the current fractional system that would make, say …‘inflation’ with an annual 1.5% ‘gold money’ production rate (with 100% reserves) pale by comparison to modern currency/fiduciary media inflation?
do the other M(oneys…2, 3, etc)s (if they exist) http://en.wikipedia.org/wiki/Money_supply contribute in some way to further increase varieties ‘fiduciary media’ that send money prices for goods higher than that of the gold production rate mentioned above?
when currency or a check deposit is made at a bank, my understanding is that the bank will take a large percentage of the currency or ‘fiduciary media’ and lend the ‘stuff’ out?
if a $100 check is deposited at a bank does the bank then somehow aquire (based on a 10 percet reserve) $10 in currency from somewhere?
is there a constant selling of some type of bank assets to keep currency reserves of 10%?
again my understanding of the bank inflation process is unclear.
but if i understand correctly that the banks today are basically making nearly a doubling of deposited money in the sense of the deopsitors ‘belief’ and carrying-out of spending more than a 10% reserve and a loan-check holder spending or depositing the previously deposited money.
does this ‘loan-check money’ plus spendable ‘fiduciary media’ in an account put continuing upward pressure on prices that would not occur with100% reserve function?
deposits would be deposits…‘sitting money’, iow. loans would be money put at ‘risk’ with the hope if interest profit.
but there would never be a spendable ‘fiduciary’ represention of currency in a checking (or other) account.
hopefully these questionas are cogent enough for answer.
if i am incorrect in any assumptions here clarification would be appreciated.
please…no responses from the ‘jon irenicus’ poster
and to the individual who posts under that name, please dont use another name to reply to these questions
thanks
sthomper