Money Supply – October 2009

The true money supply in October was $2,151 billion, up 7 percent from 1 year ago:


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2 thoughts on “Money Supply – October 2009”

  1. “Retail money funds invest in short-term debt, such as US Treasury bill and commercial paper. They are not used or accepted as media of exchange, and are hence not part of the true money supply.”
    i dont even know what these are..or if they are even real. if they do exist, is the ‘money’ contained in the ‘short term debt’ part of currencin in circulation? is it the bank credit that stems from checking deposits?
    so..100 dollars goes in a checking account..90 dollars is loaned out for 5 years lets say…i have 10 dollars and 90 of bank credit dollars in my account…if the 90 loaned out by the bank goes into a “retail money fund” which i assume would have a dollar balance…would that be part of the currency in circulation???? and already accounted for?
    if i wrote a check with 90 of bank credit dollars into a ‘retail money fund’ m1 would decrease….and….the money measure which contains ‘retail money funds’ would increase??

    is that true scenario..somewhat anyway??

  2. “is the ‘money’ contained in the ’short term debt’ part of currency in circulation?”

    The money given to the seller of the short term debt remains in circulation. It ends up on his bank account which is accounted for under checking deposits. All I am saying that the short term debt papers in the “drawer” of the bank are not money.

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