The broad money supply declined by US$50 billion in July and is growing at just a 2% annualised pace. So what? Well, it takes new money to keep a credit bubble inflated (or to keep it from deflating). If the figures from the Fed can be trusted, and if they show that new money isn’t forthcoming (or that it’s forthgoing) then it may be a sign of even greater financial asset deflation in the months ahead.
August 20th, 2008 | Dan Denning | 4 comments | ContinuedAll Posts Tagged With: "broad money supply"
