What's the Bottom Line on Money and Banking?

If we're looking empirically, about 80% of bank deposits are savings. The other 80% that might go into a CD, that is still going to be lent out. Even for that final 20%, if that is sitting in the bank and it's out of the system and it's not in circulation, then that is effectively going to transfer its purchasing power to every other dollar in circulation. So the bottom line is that measuring by purchasing power, it's the only thing that matters here.