[mattduke]

The national debt, more correctly known as Treasury Gross Public Debt, shot up US$141 billion last week! Yikes! Don't multiply $141 billion by 52 weeks because you will plotz at the answer, and we are so freaking doomed that I cannot chug raw tequila fast enough to dull the rising feeling of doom or the rising taste of vomit tinged with blood.

Sure enough, the monetary base exploded to 911.350 from 843.825 in one week! Gaaahhh!

And as bad as this was, nothing could have prepared me for the news that Total Fed Credit jumped by an unbelievable $203.6 billion last week! In one week! $203 billion! In one lousy week!

This unbelievable, unprecedented, staggering $203.6 billion increase in credit is in the Federal Reserve account that, in the old days, used to run $10 billion a month, which was considered excessive, all the way during the huge 11-year inflationary run of money and credit that began in earnest in 1997, which produced all of the bubbles that are now bursting and causing this economic mess.

Now, instead of a white-hot $10 billion a month, now it's 20 times as much, $203 billion! And in one week! Gaaahhh! We're freaking doomed!

atimes

edit: added chart

[Eli]

Hahahahahaahha

Gaaahhh! We're freaking doomed!

It actually says that in the article, and it is absolutely correct.

this is not asiantimes but Asiatimes so these are only semipro journalist.

[DantesPeak]

The money supply grew recently at a rate of 100% + per year, which after following this statistic for 30 years, is the fastest I ever remember.

The $200 billion in new fiat money the Fed created last week has much to do with that.

If all this money doesn't plug up the rather large black hole - opened up by the Lehman nuclear derivative bomb - then for all practical purposes I would concede the 'fast crash' is upon us.

However I do think they will be able to stop the complete collapse of financial markets by creating money even faster, as least for a little while longer.

[Eli]

Seriously what we are hitting appears to be Zero hour where debt creation no longer stimulates GDP.

Zero hour explained

It is an interesting concept and worthy of another thread, someone should read it and do a little research about it and post a new thread on the subject.

[pup55]

Bernanke, student of the Great Depression, has been saying "the whole thing could have been avoided if only they had added liquidity".

Years from now, a student studing this period will look back and say that he tried to solve a different problem from the one he had.

This still boils down to the problem that the political and economic system in this nation, as it is now constituted, will not tolerate sacrifice, discipline, or deferred consumption.

[DomusAlbion]

This still boils down to the problem that the political and economic system in this nation, as it is now constituted, will not tolerate sacrifice, discipline, or deferred consumption.

This is the heart of the matter and I would posit that we, the people, have brought this monster into existence. The people no longer want to sacrifice for the future, they no longer can tolerate risk or failure. We all gamble hoping for the "big win" but we don't want to lose or pay the debt.

There will be blood, suffering and death.

[Roccland]

This still boils down to the problem that the political and economic system in this nation, as it is now constituted, will not tolerate sacrifice, discipline, or deferred consumption.

This is the heart of the matter and I would posit that we, the people, have brought this monster into existence. The people no longer want to sacrifice for the future, they no longer can tolerate risk or failure. We all gamble hoping for the "big win" but we don't want to lose or pay the debt.

There will be blood, suffering and death.

Reminds me of a quote from 'Hunt for Red October':

"You ass! You've killed US!"