>>30591555This book seems to be at a place of a doubt as to whether the "new" American system of checks and balances, with its "money, capital and banking" is possible.
The world's most advanced banks hold vast amounts of cash in reserves. Their holdings are held for short periods and are used to buy, redeem, and dispose of a wide range of products and services.
To the extent that the system of checks and balances has not developed, in the past thirty years, capital accounts have been used for many other economic activities, from mining and metals to trade with foreign governments.
This explains the dramatic increase in interest rates and the loss of confidence in the United States dollar. The dollar has had little effect on the price rate because it is largely based on a commodity, the dollar (the US dollar), which the Federal Reserve has kept on its reserve lines. The central banks of the major banks are in a position not to engage in risky investments. It is therefore more likely that the dollar is to lose market value in the last three years and its dollar value depends largely on the cost of new purchases.
The central bank can control inflation with its printing press and this in turn has been a major factor in the inflation rate over the past five years (see Figure 1). The real inflation rate in the United States rose steadily from 1.8% in 1979 to 3.0% in 2010.
