politifact notes the following 11/30/2011:
“it’s incorrect to say the fed created $16 trillion because that’s a running total of lending, and the running total ignores a key reality. the dollars in those loan programs went out and came back in through a revolving door. orice williams brown, managing director financial markets at the gao, gives as an example a bank borrowing $10 billion at night, repaying it the next morning and then borrowing it again in the evening. the running tally would count that as $20 billion borrowed. ‘but if you look at it, it’s the same $10 billion dollars,’ brown said. “ ...
“the gao did figure out what the total would look like if you accounted for this churn of dollars. that’s in table 9, which the paul campaign did not cite. the grand total there is about $1.1 trillion which is a lot of money but much less than $15 trillion.” ...
“the other missing piece is the current status of those loan programs. also not cited by the paul campaign, the gao reported that after all that lending, the total amount still outstanding is $13 billion dollars. the money was created out of thin air, but when it was repaid, it no longer existed. this is where the federal reserve is different from any other bank in the us.” ...
“also not cited by the paul campaign, the gao reported that after all that lending, the total amount still outstanding is $13 billion dollars. the money was created out of thin air, but when it was repaid, it no longer existed. this is where the federal reserve is different from any other bank in the us.” ...
for the full story ...
http://www.politifact.com/truth-o-me...lout-and-send/
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