U.S. money supply falling at rates not seen since the Great Depression

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DouggieJ

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The M3 money supply in the United States is contracting at an accelerating rate that now matches the average decline seen from 1929 to 1933, despite near zero interest rates and the biggest fiscal blitz in history.

The M3 figures - which include broad range of bank accounts and are tracked by British and European monetarists for warning signals about the direction of the US economy a year or so in advance - began shrinking last summer. The pace has since quickened.

The stock of money fell from $14.2 trillion to $13.9 trillion in the three months to April, amounting to an annual rate of contraction of 9.6pc. The assets of insitutional money market funds fell at a 37pc rate, the sharpest drop ever.

"It
 
You are a bitter man, man.

Get over yourself. I know you enjoy having my attention but you dont have to throw tantrums.
 
Does this mean people are burning money for warmth or something? Where is it going? Other countries?
 
Obama and this current administration are pros at making people think everything is just fine and dandy.
 
I'm just constantly dumbstruck by the fact that you appear to take yourself seriously.

I mean, DE and EC are morons, too, but they seem to know it.
 
It never really existed. It was all just bullshit 1's and 0's in electronic transactions.
 
So what's the significance of the fact that drops were seen in the money supply just before the Great Depression?
 
gladly admit to being ignorant, but didn't the govt/fed increase our money supply to some insane level and all that extra cash was part of the reason for the collapse ?

So how is the govt/fed forcing that down a bad thing ?
 
The problem is it doesn't seem the Fed is doing it. The Fed Open Markets Committee haven't changed their monetary policy and short term interest rates are still at 0 - 0.25 %
 
Uh. Where are they getting their unofficial M3 numbers, out of curiosity?

Since, you know, M3 numbers haven't been published since 2006.
 
I could have sworn that just a while ago the economy was going to collapse and inflation was going to make Zimbabwe's look like a joke due to the huge influx of money into our economy out of the thin air.

Crisis averted?
 
Loss of the "multiplier effect" and "velocity of money" ... possible early signs of a slowing economy.
 
wait...people are still using the whole Bush retort? or maybe just you?

Can it be that both just suck? Is it somehow ok for Obama to be a fuck up because Bush was?
 
It's just funny how the Republicunts are criticizing Obama for matters they didn't even bother taking a look at (immigration and healthcare) while they kept on fucking up the economy even more.

Even funnier is the fact at how they seem to be pinning all of Bush problems into Obama as if he were the one that started this whole shit when the man is trying to fix it.
 
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