> No, but you had to have had $10B to transfer. No, I would have had to have... | Hacker News

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jonknee on Jan 4, 2011 | parent | context | favorite | on: When 9 Trillion dollars from Fed Reserve goes miss...

> No, but you had to have had $10B to transfer.

No, I would have had to have just $1B (it gets tossed back and forth--with interest given to the Fed). Also, the Fed doesn't need the $1B, it can create it and then destroy it when it's deposited back. It's electronic these days, so a number is incremented and decremented in a database.

anamax on Jan 5, 2011 [–]

> No, I would have had to have just $1B

You're right - I misread.

> Also, the Fed doesn't need the $1B, it can create it and then destroy it when it's deposited back.

It's not quite that simple. Everything is okay until it isn't deposited back. Then there's an extra $1B in the economy.

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