Re: Financial topics
Posted: Wed Oct 17, 2012 1:05 pm
Where did all that QE1, QE2 and QE3 Money End Up ?
Why has it not stimulated the economy more ?
Why has it not caused massive inflation yet ?
The following graphs appear to shed some light on the the answer to those questions.
Non-Borrowed Total Reserves

Required Reserves
Please Note THIS graph has a much smaller Verticle ( Y ) Scale - Maxes out at 110 Billion

Please Note ABOVE graph has a much smaller Verticle ( Y ) Scale - Maxes out at 110 Billion

It Appears the Commercial Banks have just been sitting on it.
Why has it not stimulated the economy more ?
Why has it not caused massive inflation yet ?
The following graphs appear to shed some light on the the answer to those questions.
St. Louis Federal Reserve wrote: Reserve balances with Federal Reserve Banks are the difference between "total factors supplying reserve funds" and "total factors, other than reserve balances, absorbing reserve funds." This item includes balances at the Federal Reserve of all depository institutions that are used to satisfy reserve requirements and balances held in excess of balance requirements. It excludes reserves held in the form of cash in bank vaults, and excludes service-related deposits.
Non-Borrowed Total Reserves

Required Reserves
Please Note THIS graph has a much smaller Verticle ( Y ) Scale - Maxes out at 110 Billion

Please Note ABOVE graph has a much smaller Verticle ( Y ) Scale - Maxes out at 110 Billion
Excess ReservesSt. Louis Federal Reserve wrote: Excess Reserves: Amount of funds held by a depository institution in its account at a Federal Reserve Bank in excess of its required reserve balance and its contractual clearing balance. Excess reserves equals total reserves less required reserves.

It Appears the Commercial Banks have just been sitting on it.