Friday, October 21, 2011

US money supply up 30%

Very scary headline, the US money supply growth is out of control.  Although the US economy is not in recession its not exactly on fire.  The 30% growth in 4 months  can only have (eventually) one outlet:  Inflation.  It may take a while because the US economy is a service economy and there is tremendous labor slack, but it will happen.

The most amazing thing, of course, is that the FED is taking the money out of the hands of savers into the hands of the borrowers.  Maybe the Tea Party is right to be pissed after all, they are getting screwed -- hard!

See this bit in ZeroHedge here

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