Ready to double the money supply - Helicopters are ready to fly?

Economics Economics Questions
1

From the FED,

Oct. 16, 2008 - Total factors supplying reserve funds - 1,805,600

Sept. 11, 2008 - Total factors supplying reserve funds - 958,851

The only thing close to this I see is around Sept. 11, 2001, when there was the huge “liquidity injection,” but it quickly left.

Sept 6, 2001 - 658,137

Sept 13, 2001 - 748,145

Sept 20, 2001 - 654,932

It doesn't reach that high again until March, 2003.

Or look at total reserves in this file.

So…should we be expecting the destruction of the currency?

2

That’s just physical cash, isn’t it? Considering that banks are shoring up on reserves, I don’t think that money is having much of an effect overall.

3

Right - cash and bank reserves held at the FED - I actually think it consists mostly of bank reserves.

And it’s not having an effect right NOW, but I suspect it will once this crisis seems over.