Monday, October 14, 2013

Graph of M5

The formula is Federal Debt Held By the Public + M2 - US Treasuries Held By the Federal Reserve.  This number will continue upwards forever, although its growth has stalled recently due to the DC budget wars.  Our system is based on debt and more debt must continuously be created in order to pay the interest on the old debt.  Even slowing down the rate of increase causes pain to the powers that be.

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