|
|
"A comprehensive, collaborative elections resource."
|
US money supply plunges at 1930s pace as Obama eyes fresh stimulus
|
|---|
| Parent(s) |
Issue
|
| Contributor | Penn Con |
| Last Edited | Penn Con May 27, 2010 11:44am |
| Logged |
0
|
| Category | News |
| Author | Ambrose Evans-Pritchard |
| Media | Newspaper - Daily Telegraph |
| News Date | Thursday, May 27, 2010 05:00:00 PM UTC0:0 |
| Description | 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’s frightening," said Professor Tim Congdon from International Monetary Research. "The plunge in M3 has no precedent since the Great Depression. The dominant reason for this is that regulators across the world are pressing banks to raise capital asset ratios and to shrink their risk assets. This is why the US is not recovering properly," he said.
|
| Share |
|
|
2¢
|
|
| Article | Read Full Article |
|
| Date |
Category |
Headline |
Article |
Contributor |
|
|
