In actual hard currency, there isn"t a lot of "money." Our economic system uses the multiplier effect. That presumes that a portion of the wealth you have in the bank can be loaned to another person who in turn will keep some in the bank and again loaned to another person. So, if the bank reserve amount, that portion that can"t be loaned is twenty percent, 32 K of your 40 K can be loaned and $25,600 loaned again and $20,480 loaned again ad infinitum. So, right here we have your original $40,000 generating another $78,080 in pseudo money.
If you want to find out how much "cash" there is, do a search for M1.
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Today's Featured Article - A Cautionary Tale - by Ian Minshull. In the early 1950s my father bought an Allis Chalmers B and I used it for all the row crop work with the mangolds and potatoes, rolling and the haymaking on our farm. The farm and the Allis were sold and I have spent a lifetime working on farms throughout the country. I promised myself that one day I would own an Allis. That time event
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