Global Economic Trend Analysis: M3 Contraction - The Future Is Now
Global Economic Trend Analysis: M3 Contraction - The Future Is Now The Telegraph is reporting Sharp US money supply contraction points to Wall Street crunch ahead.
The US money supply has experienced the sharpest contraction in modern history, heightening the risk of a Wall Street crunch and a severe economic slowdown in coming months.
On a three-month basis, the M3 growth rate has fallen from almost 19pc earlier this year to just 2.1pc (annualised) for the period from May to July. This is below the rate of inflation, implying a shrinkage in real terms.
The growth in bank loans has turned negative to a halt since March. “It’s obviously worrying. People either can’t borrow, or don’t want to borrow even if they can,” said Mr Stein.
Original post by malct
