Reply To: Money sitting on the side


Let me address the 3 answers you gave again.
1. I seem to have not understood what “demand for money was”, I thought it was demand for credit. Thank you for clearing that up.
2. So much of the money that we talk about being printed by the fed was the asset swaps and lending to other central banks. But these are not sufficient to raise the interest rates for record lows because in the bigger picture the public’s desire to hold money has meant relatively low lending overall. The swaps have given only 1.2 trillion to the banks, which could become over 10 trillion but haven’t due to lack of lending and other central banks can’t issue fiduciary media. Wasn’t there a Bloomberg article that said the central bank gave away 7.7 trillion in 2008? Where did that go to?
3. I understand now that the people don’t want to borrow that much, but do the banks themselves want to lend if they could or are they satisfied with so little in interest from the fed when there is no risk?
Thank you so much for all of your patience in answering my questions, this is very greatly appreciated