This chart shows the ratio of total credit in the U.S. to M2. A rising line means total credit is expanding faster than M2, or that M2 is falling faster than total credit. As can be seen, the massive money creation against a stagnant credit market has sent the ratio tumbling. In order to return to the ratio of 3:1 seen at the beginning of the 1980s, the Federal Reserve would need to print about $8 trillion or the credit market would need to deleverage by about $25 trillion. The latter number is about 30 times the size of the deleveraging that caused the 2008/9 financial panic and only the private market and local governments have deleveraged. The federal government has increased debt to offset the decline and total credit outstanding has remained steady.
A Couple of Nav Changes
-
FEEDI wanted to bring everyone’s attention to a couple of important website
changes. The first one has to do with menus on Slope…………. For years, the
act of...
No comments:
Post a Comment