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US credit shrinks at Great Depression rate prompting fears of double-dip recession

Posted By admin On September 15, 2009 @ 4:19 am In Featured Stories | Comments Disabled

Ambrose Evans-Pritchard,
London Telegraph [1]
Tuesday, Sept 15th, 2009

Both bank credit and the M3 money supply in the United States have been contracting at rates comparable to the onset of the Great Depression since early summer, raising fears of a double-dip recession in 2010 and a slide into debt-deflation.

Professor Tim Congdon from International Monetary Research said US bank loans have fallen at an annual pace of almost 14pc in the three months to August (from $7,147bn to $6,886bn).

“There has been nothing like this in the USA since the 1930s,” he said. “The rapid destruction of money balances is madness.”

The M3 “broad” money supply, watched as an early warning signal for the economy a year or so later, has been falling at a 5pc annual rate.

Full article here [1]

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[1] London Telegraph: http://www.telegraph.co.uk/finance/financetopics/recession/6190818/US-credit-shrinks-at-Great-Depression-rate-prompting-fears-of-double-dip-recession.html

[2] Image: http://prisonplanet.tv/signup.html

[3] Fears Grow Over Double-Dip Recession: http://www.prisonplanet.com/fears-grow-over-double-dip-recession.html

[4] Stocks Plunge, Double Dip Recession Fears Grow After Home Sales Report: http://www.prisonplanet.com/stocks-plunge-double-dip-reccession-fears-grow-after-home-sales-report.html

[5] Moody’s predicts default rate will exceed peaks hit in Great Depression: http://www.prisonplanet.com/moodys-predicts-default-rate-will-exceed-peaks-hit-in-great-depression.html

[6] Credit Card Companies reducing your credit to help inch us to The GREAT DEPRESSION: http://www.prisonplanet.com/credit-card-companies-reducing-your-credit-to-help-inch-us-to-the-great-depression.html

[7] The Worst Money Supply Plunge Since The Depression Means A Double Dip Is Now A ‘Virtual Certainty’: http://www.prisonplanet.com/the-worst-money-supply-plunge-since-the-depression-means-a-double-dip-is-now-a-virtual-certainty.html

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