“Bank capital punishment and other nostrums”
Across the globe, governments and their central banks have embarked on a witch hunt against bankers, imposing new capital requirements, regulations and even launching investigations against them. While policy makers need scapegoats to blame for the financial crisis of 2009, targeting bankers creates a problem as it “constrains the growth of money broadly defined.” Without a doubt, this explains the downward growth trends in the United States, Europe, Japan and even China.
In a piece published in the January 2015 issue of Globe Asia (article here), Professor Steve Hanke explores the implications of the attacks on bankers on the global money supply and provides some valuable insight to the matter, reminding us that there are various components that appear on a bank’s balance sheet that should be taken into account but are often forgotten (i.e. credit).
When talking about the United States, Professor Hanke notes that:
Even though the Fed has been pumping out State Money at a super-high rate since the crisis of 2009, it hasn’t been enough to offset the anemic supply of money produced by banks — Bank Money. Even after six years of pumping, State Money still only accounts for 21 percent of the total money supply broadly measured. In consequence, the Divisia M4 money supply measure is growing on a year-over-year basis at a very low rate of only 1.7 percent. And that’s why nominal U.S. aggregate demand measured by final sales to domestic purchasers is still growing at below its trend rate of 5% (see the accompanying chart).
Clearly, proponents of sound money must be alarmed by such figures.
Source: http://soundmoneyproject.org/2014/12/bank-capital-punishment-and-other-nostrums/
Anyone can join.
Anyone can contribute.
Anyone can become informed about their world.
"United We Stand" Click Here To Create Your Personal Citizen Journalist Account Today, Be Sure To Invite Your Friends.
Please Help Support BeforeitsNews by trying our Natural Health Products below!
Order by Phone at 888-809-8385 or online at https://mitocopper.com M - F 9am to 5pm EST
Order by Phone at 866-388-7003 or online at https://www.herbanomic.com M - F 9am to 5pm EST
Order by Phone at 866-388-7003 or online at https://www.herbanomics.com M - F 9am to 5pm EST
Humic & Fulvic Trace Minerals Complex - Nature's most important supplement! Vivid Dreams again!
HNEX HydroNano EXtracellular Water - Improve immune system health and reduce inflammation.
Ultimate Clinical Potency Curcumin - Natural pain relief, reduce inflammation and so much more.
MitoCopper - Bioavailable Copper destroys pathogens and gives you more energy. (See Blood Video)
Oxy Powder - Natural Colon Cleanser! Cleans out toxic buildup with oxygen!
Nascent Iodine - Promotes detoxification, mental focus and thyroid health.
Smart Meter Cover - Reduces Smart Meter radiation by 96%! (See Video).