Always grounded and centered, Ellen Brown steps into the sticky argument raging around economists about what future is possible for the American economy [and it's banks] with: "While contrarians are screaming "hyperinflation!", the money supply is actually shrinking. This is because most money today comes into existence as bank loans, and lending has shrunk substantially. That means the Fed needs to "monetize" debt just to fill the breach. "
See what I mean? Now for the excerpt:
... The Fed is just stepping in where the commercial banking system has failed. Except for coins, which are issued by the government and compose only about one ten-thousandth of the money supply (M3), our money today is nothing but bank credit or debt; and we're now laboring under a credit freeze, which means banks aren't creating nearly as many loans as they used to. ... Read it all! Click here.
No comments:
Post a Comment