May 27, 2010
|Larry Summers wants Congress to “grit its teeth” and get busy on another worthless stimulus.|
The bankster operative who helped destroy Glass-Steagall is back.
Larry Summers, Obama’s top economic adviser, has told Congress to “grit its teeth” and approve a fresh fiscal boost of $200 billion to keep growth on track, reports the Daily Telegraph. “We are nearly 8m jobs short of normal employment. For millions of Americans the economic emergency grinds on,” he said.
The M3 money supply in the United States is contracting at an accelerating rate that now matches the average decline seen from 1929 to 1933, despite near zero interest rates and the stimulus boondoggle.
“It’s frightening,” professor Tim Congdon from International Monetary Research told the Daily Telegraph. “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.
No precedent since the Great Depression. Meanwhile, the corporate media has the public obsessing over Lindsay Lohan’s court-ordered ankle bracelet.
The M3 is a measure of the money supply. It began tumbling last summer. The stock of fiat money fell from $14.2 trillion to $13.9 trillion in the three months to April, amounting to an annual rate of contraction of 9.6 percent. The assets of institutional money market funds fell at a 37 percent rate, the sharpest drop ever.
- A d v e r t i s e m e n t
In 2006, the Federal Reserve stopped publishing M3 figures. The Fed said it did this to save money. Nonsense. It did this to stop you from understanding what the big boys are doing with the money supply. It allows them to more effectively cook the books and keep you in the dark. It allows them to portray the largest economic crisis in history as a recovery.
Economists and others use ancillary data provided by the Fed to get an idea of what is going on with the money supply.
In 2008, the funny money supply experienced the sharpest contraction in modern history. The current “economic crisis” followed in short order. “The US economy is without doubt facing severe headwinds going into the autumn,” reported Ambrose Evans-Pritchard in August of that year. He wasn’t whistling Dixie.
Manipulating the money supply is how the banksters control economies and force nations to do their bidding. “The system is not being fixed and deliberately so. The elitists do not want it fixed. They want a collapse. This is the only way they can force people to accept world government,” writes Bob Chapman. “Many say they do know where it will end, but if they studied history they’d know exactly where it would end. It will end with the deliberate collapse of the financial and economic system and war, the way it always has.”
International bankers have choices. Either Iran or North Korea. Only time will tell if they will exploit these emerging crises and go for it as history and Chapman warn they invariably do.