In the Last Six Weeks, the Federal Reserve Has Doubled the Amount of Total Credit in the Banking System Since 1913
November 1st, 2008Via: Contrarian Profits – Richard Daughty:
Almost a trillion dollars of new credit in 6 weeks! Gaaaahhhh! My hands now mysteriously clenched into Mogambo Fists Of Outrage (MFOO), I am forced to clutch a pencil between my teeth and try to laboriously calculate that if $1,803 billion in Federal Reserve credit is up $915 billion in 6 weeks, then the percentage change is, ummm, wait a minute, ummm, carry the one, ummmm, well, the percentage change is, ummm, well, who the hell cares what the damned stupid exact percentage is when you can just freaking LOOK at the problem to see that TFC has about doubled? Yow! A 100% gain! In 6 weeks!
My brain is staggered! In 6 lousy weeks, all of the total credit in the banking system created by the Fed since 1913 was almost instantly (poof!) doubled! Gaaaahhhh! We’re freaking doomed!
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And don’t get me started on foreclosures, falling earnings, falling employment, insane levels of money and credit creation, or the horrors of inflation, because then I will also get started yammering about how gold, silver and oil have got to be the biggest bargains out there right now, and trust me when I tell you that you do not want to get me started!
Yeah, that’s a lot. Keep in mind that before that six-week period in which the Fed doubled the total amount of credit it ever created was a 95-year period, or almost a century. That’s the lifetime of a very long-lived modern-day human. And they doubled it in the amount of time it takes to get a backyard garden going.
Cryptogon, what’s your take on this? What will be the effect of adding all this credit to the mix?