World Money Supply Shrinking While U.S. Deficit Soars - WHY?

The reason is because people prefer to let their money "work" and receive interest, so that they get a guarenteed interest rate, rather than spend it on goods, services or production.

The last three months are out of balance with the rest of the graph.

Having said that ....

It seems he has concluded the obvious...

What Dr. Paul has been saying all along ...

The debt is being monetized ...

One can only conclude inflation ....

If the confidence in the dollar continues to erode relative to other world currencies.

It looks like we are in the beginning phase of discussing the addition of a one world currency.

I sure hope Dr. Paul is able to insert language in such a bill, if it is introduced, that will allow other, non central bank controlled, currencies to exist and compete.

It will be the answer to a lot of my prayers.

WAHOR!!
http://www.dailypaul.com/...

Ron Paul Quote:
"Now that our foreign creditors are less willing to purchase our debt, what debt we cannot sell to foreigners will be monetized through the Federal Reserve, resulting in increased inflation."

http://www.thebigmoney.co...

"Lead, follow, or get out of the way."
-- Thomas Paine

That graph looks like something Wile E Coyote would drop from--the only thing missing is the little tree sticking out on the side.

http://viper.haque.net/~t...

beepbeep

The decrease in the money supply is due to bank write-downs. This is something banks do when they're experiencing losses, they decrease the paper value of their holdings and the result is a loss of money.

It's as tangible to write down a million dollars as it is to take a million dollars in FRN's and burn them in a campfire.

This is the cause of our economic worries with regards to the credit system, that there is suddenly much less money to be had.

THe government shouldn't pay interest to begin with. We pay taxes to get services, not to feed those who expect to get interest payments. Usury always results in collapse.

THe government shouldn't pay interest to begin with. We pay taxes to get services, not to feed those who expect to get interest payments. Usury always results in collapse.

I just bought some junk silver coin at 11 times faqce value. Is that an acceptable rate?

The U.S. defaults on their paper. Sorry, we're not paying interest anymore. Or we declare a moratorium. Or, sorry, we are bankrupt and can't pay, we have to go Chapter 13 to readjust the debt. Before that interest rates on their paper will soar. They may also change the dollar. Remember, we started out with gold and silver coin, then to paper backed by gold, then silver backed paper, then U.S. notes (guaranteed by the Treasury), then after Kennedy's death to FRN's. So why not a new change with forced returns of FRN's. These guys have no consciences and anything is possible--even the worst.

Sheldon Waxman
sheldonw72@gmail.com
www.thelawyer.info
www.independentcontractor...

World banks around the world gathered up FRNs, then they lent them to the U.S. government via Treasury bonds and the U.S. government lent these dollars to private banks to lend to people. There is not shortage of FRNs relative to the debt incurred by the credit created. The problem occurs if people do not go out and borrow and become enslaved by usury. If people do not borrow then the economy could go in two directions, either deflation over a long period until debt is paid off or foreclosed or inflation is the new director of the treasury decides to bypass the usurious system and print money directly into the system.

World banks around the world gathered up FRNs, then they lent them to the U.S. government via Treasury bonds and the U.S. government lent these dollars to private banks to lend to people. There is not shortage of FRNs relative to the debt incurred by the credit created. The problem occurs if people do not go out and borrow and become enslaved by usury. If people do not borrow then the economy could go in two directions, either deflation over a long period until debt is paid off or foreclosed or inflation is the new director of the treasury decides to bypass the usurious system and print money directly into the system.

It's simple, the U.S. treasury removes FRNs with treasury bonds, for which we pay interest.
Usurious bastards.
grant

interesting

"Only a virtuous people are capable of freedom. As nations become corrupt and vicious, they have more need of masters." Benjamin Franklin
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According to the article, the reserves of U.S. Treasuries held by foreign banks is shrinking, not the money supply of the different nations. The author goes on to say that in order for the U.S. to make up for this action, they are going to need to monetize the debt, this will lead to hyperinflation.