Re: Seigniorage, Who, What, Why

From: Bill Ryan (william_b_ryan_at_hotmail.com)
Date: 08/16/04 

Date: 15 Aug 2004 19:16:46 -0700

William F Hummel <wfhummel@comcast.net> wrote in message news:<sevsh0lklgmatfuq235inh8vmmnkd3bb56@4ax.com>...
> On 14 Aug 2004 20:40:55 GMT, gchand4059@aol.com (Lantern) wrote:
>
> >wfhummel wrote:
> >
> >>Fed notes in circulation results in
> >>seigniorage for the Treasury equal to the total interest paid on the
> >>Treasury securities in the Fed's portfolio, less the Treasury's cost
> >>of producing the notes and the Fed's cost of distribution.>
> >
> >That doesn't sound like enough. The interest earned on securities in the Fed's
> >portfolio is only like maybe 4%. The seigniorage is like almost 95% (like
> >$19.94 on every $20 bill printed.)
> >
> Then you don't understand seigniorage on notes. Read my article
> again.
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Then, he definitely won't understand it.