Actual Physical stock of usd

  Fractional reserve lending on a national level. Actual stock of printed money is not very high. The grand majority of the money supply and the nation's GDP is actually just loans and fractional reserve lending activities.

  The actual physical stock of money is probably only 10 percent of the total money circulating at any given time. The rest of the money supply is just made up of loans.

  The central banking system in the united states prefers to expand the money supply through fractional reserve lending rather than quantitative easing. Depending on what the reserve ratio happens to be, a small bit of quantitative easing has a strong multiplier effect on increasing liquidity through lending practices by private banks. From the chart, it appears that it is a little bit higher than 1 to 10. Thus for every 1 paper or digital dollar, there is about 9 or more dollars made up entirely on loans and other fictional assets.

  I believe that they stress it gets no higher than 1 to 10. Otherwise, the number of dollars that can be reflected from just that one dollar would never cease.

   It is a very odd system. The designers must have foreseen that these debts are impossible to repay without having to punish the debtor with even more debt. As a result, these debts can never really be paid off.

  I am not certain why banks prefer such a method. Maybe it gives them leverage? Or maybe they are just so used to doing this as a result of natural evolution and could not come up with a better way due to their fixations on their pasts.