Originally Posted by
aviators99
Originally Posted by
badgerW
So you are saying that the government is keeping the M0 (hard currency) money supply static? That for every coin or bill they mint or print, they are destroying an equivalent amount of coins or bills?
In essence, yes. The minting of coins is for money that has already been authorized to be added to the money supply (via any format).
The gov is diluting the money supply (M0) with or without the coins, I have no insight into if the coins are an excuse for further money supply expansion (dilution) or not, but dilution should be included in any money supply expansion "profit" calculations.
Last edited by MyTravels; Jul 22, 2011 at 6:18 am