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6min chapter
Is Sound Money the Answer? with George Gammon (WiM268)
The "What is Money?" Show
The Fed's Balance Sheet Is Not Representative of Purchasing Power
The fed technically can't buy directly from the treasury so you're going to have the treasury sell to primary dealers or banks. Janet Yellen sends out that stimmy check now all of a sudden we've increased M2 money supply because that initial treasury was purchased by a bank using something other than M2. The only thing that's happened in this transaction is bank reserves have gone from one account on the fed the balance sheet down to another there's been zero impact on M2 none but what happens is when a non-bank buys from the Fed and then Janet Yellen spends it's going to be a net wash for the currency units chasing goods and services.
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