Wednesday, June 2, 2010

Money



Money Supply vs. Debt Service
A contraction of the broad Money supply is taking place because the influx of Money into the US economy, i.e., lending to consumers and non financial businesses, has fallen below the rate at which Money is flowing out of general circulation as a function of debt service (interest and principle payments on existing debt), thus a net drain of Money from the broad US economy is taking place.

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