"This book truly
is a must read."
-- Congressman Ron Paul
EXCESS RESERVES OF DEPOSITORY INSTITUTIONS...
... HAVE JUMPED FROM $2 BILLION TO $559 BILLION SINCE AUGUST!'
When the banks begin to feel more comfortable with expanding the volume of their conventional loans and investments, they will have more than $550 billion on hand to employ for that purpose. The multiplied effect of such a vast amount of lending, as newly created deposits make their way through the fractional-reserve banking system, portends a gargantuan increase in the money stock and hence a correspondingly enormous jump in the general price level. As the public responds to the acceleration of inflation by reducing its demand for cash balances, the increased velocity of monetary circulation will contribute to even more rapid price inflation.
