Show HN: M1 Chart – The stock market adjusted for the US-dollar money supply

Re:Show HN: M1 Chart – The stock market adjusted for the US-... by jkhdigital on Saturday February 13, 2021 @09:14PM (#26129065)

Thank you for saying this, because it is incredibly easy to overlook.

However, we must also remember that dollars are effectively debt—banks create them by loaning money. So while it is true that dollars cannot be “parked” in assets since there are two sides to every transaction, if the seller goes on to pay down debt with the proceeds then the money in circulation will decrease.

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Re:Show HN: M1 Chart – The stock market adjusted for the US-... by epr on Saturday February 13, 2021 @09:37PM (#26129175)

> However, we must also remember that dollars are effectively debt

They are debt in the most literal sense possible. They are listed as liabilities in the fed's balance sheet. The "note" in "Federal Reserve Note" written on every dollar bill is referring to the legal definition. It's a promise to pay.

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