The Bubble Goes Bang

I started this blog in June 2007 asking these questions: Are we in a massive asset bubble that will blow up in our faces ??? - ANSWERED YES ! Is western and particularly British society on the verge of social collapse??? What are the best common sense long term investment strategies to keep you rich? When will consumption/debt bubble economics end and a real savings/production economy begin ???

Monday, 31 May 2010

Negative US M3 points to more deflation and a double dip ?

Chart of U.S. Money Supply Growth

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.

http://www.telegraph.co.uk/finance/economics/7769126/US-money-supply-plunges-at-1930s-pace-as-Obama-eyes-fresh-stimulus.html

The response to this is critical. If the US starts helicoptering money into the economy then hyperinflation is assured.

Eurozone M3 at -0.1 % growth:

http://sdw.ecb.europa.eu/quickview.do?SERIES_KEY=117.BSI.M.U2.Y.V.M30.X.I.U2.2300.Z01.A

UK M4 not contracting (maybe this is why it has the highest inflation rate in the developed economies)



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Posted by AC at 15:14
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