01-08-2009, 06:06 PM
These two charts display the amount of monetary reserves within the banking system: In the most simple terms, how much money is there to REALLY back up your bank deposits:
![[Image: Non_depostitory_reserves_Before.jpg]](http://i203.photobucket.com/albums/aa137/videopro_photo/finance/Non_depostitory_reserves_Before.jpg)
This first chart shows the banking system quite stable for approximately the last 50 years. Notice that in the last few months the graph suddenly and steeply plunges downwards. This indicates the amount of non-depository (borrowed) reserves declining severely into deficits of the range of 100's of billions of dollars. Money vanishing from the system at high speed. An economy on the very precipice of a crash.
Banks have have been routinely and systematically taking LOANS from the Federal Reserve to the tune of 100's of billions of dollars to satisfy reserve requirements that are dangerously relaxed and far below customarily accepted historic safe limits. Customer deposits (yours) come NOWHERE near putting a tiny dent in the reserve requirement, hence, banks need to borrow the cash from the government.
In simple terms, this equates to you living very BIG off of your credit cards, with bills still running FAR bigger (and rapidly growing) than your ability to pay them. All at the same time claiming your borrowed money (and the cost to borrow it) equals cash savings. Which it is not.
![[Image: Non_depostitory_reserves_Printed.jpg]](http://i203.photobucket.com/albums/aa137/videopro_photo/finance/Non_depostitory_reserves_Printed.jpg)
Note, in the most recent chart above, the graph suddenly and steeply reverses direction and retraces it's plunge upwards. Has the situation suddenly become much better? Unfortunately, the answer is resounding no.
What you are witnessing in the most recent portion of the chart is the Federal Reserve simply running the printing presses at high speed, creating increasingly worthless money, out of thin air.
If history is a good and reliable guide, the actions you see reflected in the chart show real panic in the Federal Reserve. So, much so, the Treasury and Federal Reserve have decided to create a likely future scenario of severe, roaring inflation in order to bail out the near term crisis. (And greedy Wall Street thieves).
So much money, printed in such a manner, has little chance of a comfortable outcome and every of an era with extreme price inflation and rapidly declining standard of living. It is happening right now, right there, before your eyes.
This first chart shows the banking system quite stable for approximately the last 50 years. Notice that in the last few months the graph suddenly and steeply plunges downwards. This indicates the amount of non-depository (borrowed) reserves declining severely into deficits of the range of 100's of billions of dollars. Money vanishing from the system at high speed. An economy on the very precipice of a crash.
Banks have have been routinely and systematically taking LOANS from the Federal Reserve to the tune of 100's of billions of dollars to satisfy reserve requirements that are dangerously relaxed and far below customarily accepted historic safe limits. Customer deposits (yours) come NOWHERE near putting a tiny dent in the reserve requirement, hence, banks need to borrow the cash from the government.
In simple terms, this equates to you living very BIG off of your credit cards, with bills still running FAR bigger (and rapidly growing) than your ability to pay them. All at the same time claiming your borrowed money (and the cost to borrow it) equals cash savings. Which it is not.
Note, in the most recent chart above, the graph suddenly and steeply reverses direction and retraces it's plunge upwards. Has the situation suddenly become much better? Unfortunately, the answer is resounding no.
What you are witnessing in the most recent portion of the chart is the Federal Reserve simply running the printing presses at high speed, creating increasingly worthless money, out of thin air.
If history is a good and reliable guide, the actions you see reflected in the chart show real panic in the Federal Reserve. So, much so, the Treasury and Federal Reserve have decided to create a likely future scenario of severe, roaring inflation in order to bail out the near term crisis. (And greedy Wall Street thieves).
So much money, printed in such a manner, has little chance of a comfortable outcome and every of an era with extreme price inflation and rapidly declining standard of living. It is happening right now, right there, before your eyes.