Tuesday, October 31, 2017

Member Bank deposits at the CB

Never saw this data taken back so far before.

If this data is accurate, you can see how this CB policy of creating abnormally large amounts of risk-free bank assets caused the Great Depression and WW2 in addition to our more recent GFC in 2008 and resultant chaos.

The 2008/2009 policy was faster to reach the apex while the 1930's policy took a longer time to max and causued the much longer grind of what became known as the Great Depression.

The twitter poster claims that the decade of non-risk asset reduction directly following this damaging policy resulted in 2.4% annual "real!" growth in GDP per capita while a commenter states the stock market averaged a 16% compound annual growth rate over the same period of policy reversal. This period became the one harkened back to via the "again" in Trump's current 'make America great AGAIN' slogan...

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