EC Nebraska | puff33m - 11/6/2023 07:12
So if bank deposits/holdings are falling, where is the money moving to? If we are just spending and not saving, don't the places we spend the money deposit in their account? At least somewhere down the line?
When the Fed sells a treasury bond on the open market, the purchaser writes a check (ok, electronic deposit) to the Fed. The Fed deposits the check in their magic account that has no balance and the money is removed from the purchasers account and vanishes into the magic.
That's part of it. |
Another M2 chart
