Wednesday, October 15, 2008

Revving Up the Helicopter

Howard S. Katz of the has published this revised chart of expansion of Federal Reserve Bank Credit. The reserve bank credits increased by another 50% since the last chart. This variable drives the amount of money in circulation in the United States. It is likely that both Barack Obama and John McCain have favored this step although none of the major media has asked or covered this question. If you are eager to pay 30% higher prices in order to subsidize hedge fund, Wall Street and commercial banking lobbies then vote for either candidate. This has nothing to do with regulation, sub-prime mortgages or bail outs. This is classic monetary inflation brought about by irresponsible political leadership.

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