The article states, "... because part of the “capital” that the banks are required to hold as reserves against deposits are federal government notes and bonds."
I am unaware of any requirement for required reserves to be held in such a form.
The quality of copyrighted editing today is atrocious. I've been around long enough to notice the decline. Errors that decades ago would be found only in small town rags I see regularly in The Times.
The article states, "... because part of the “capital” that the banks are required to hold as reserves against deposits are federal government notes and bonds."
I am unaware of any requirement for required reserves to be held in such a form.
Does this help explain? https://bpi.com/when-the-fed-buys-a-treasury-security-the-debt-does-not-go-away/
The quality of copyrighted editing today is atrocious. I've been around long enough to notice the decline. Errors that decades ago would be found only in small town rags I see regularly in The Times.
The lens of ideological distortion warps everything, including obits, at the Nation's Foremost College Newspaper.
I am supremely happy in the expectation that when I die, the Times will say nothing at all.