by Alasdair MacLeod
The Fiat Money Quantity continues to rise at an accelerated pace, and now stands at $14.286 trillion.
If it had continued to rise at the pre-Lehman crisis pace, it would be standing at only $8.474 trillion, a difference of $5.82 trillion. FMQ measures the quantity of money issued in return for the gold, first deposited in the forerunners to today’s commercial banks, and then transferred to the Fed after the creation of the Federal Reserve system. It is the sum of true money supply and the bank’s reserves held on the Fed’s balance sheet, adjusted for short-term distortions applied to the reserve total, particularly, but not limited to, repurchase and reverse-repurchase agreements.