Friday, December 2, 2011

Listener Questions 12/01/11 Preview

http://www.youtube.com/v/LCPLUfyn_7c?version=3&f=user_uploads&app=youtube_gdata

Darren from Inverclyde, Scotland: The Bank of England has created £250 billion to buy assets in a "quanitative easing" program. Under a fractional reserve banking system, won't this massively inflate the amount of "money" in the system? Using a 20 percent reserve ratio I believe the economy could be inflated by more than a trillion pounds. Correct?

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