Among his other assets: mobile telecom firms Globacom Holding and Globacom West Africa, two distinct companies with a combined subscriber base in excess of 30 million people and operations in Nigeria, Ghana, and Benin.
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First, neither excess reserves nor the monetary base (currency plus bank reserves) are money.
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While this is just armchair theorizing, I did recently meet an economist who constructed his own private measure of the monetary base that excluding excess reserves.
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This level exceeds that utilized by 95 percent of the American defense industrial base and is vastly in excess of what is currently available to the Soviet Union.
The argument was the same: the Fed had created all these excess reserves, which have caused the monetary base to rise dramatically, and with all this money sloshing around, inflation is inevitable.
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Because the initial distillation takes it to a very high proof, in excess of 90% pure alcohol, the base ingredient hardly matters because the taste is lost as it converted to practically neutral alcohol.
As for Republicans, they worked hard to preempt rebellion from their GOP base, wary of backroom deals and excess spending.
The danger is to think that rapid increases in the monetary base will keep nominal interest rates permanently lower and that the excess reserves will not eventually be lent out in search of higher returns.
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The industrial and financial base in China needs to continue to expand in order to absorb the excess commercial properties.
Huge increases in the base have not led to large increases in money, because banks are holding on to excess reserves.
This conundrum may also be viewed in terms of the significance of the behavior of the monetary base, which is a combination of bank reserve deposits at the Fed (both required and excess) and currency outside the banking system.
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