Bank Reserves Grow at 400,000 Percent?

According to economist, author and funny man, Robert P. Murphy, yes.

“Incidentally, even though I’ve quadruple-checked it, that number still seems impossible. But U.S. bank reserves were some $100 billion in September, and then were some $800 billion in December. So that means over the course of three months, they increased by a factor of 8. So that means over a year, they would grow by a factor of 8x8x8x8 = 4096, which is 409,600%, and then you subtract 100% to make it a growth figure.” (Bob Murphy’s FREE ADVICE)

And we wonder why five cent watermelons cost five dollars.

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