Figures 3 and 4 should be rotated properly. Whoever did the e-book didn’t check it.
Warren, I thought the Fed DID pay interest on required reserve balances. You wrote, “Reserve requirements also result in an implicit tax on banks because reserves held at the Fed do not earn interest. Therefore, reserve requirements reduce the revenues of the member banks.”
Wasn’t that from your previous version of this article?
I thought, fundamentally, (govt spending – taxes) went to private sector savings/wealth. Now you seem to be saying govt spending must equal taxes + govt borrowing as though it were a state govt. Very confusing for me.