When It Gets Like This, Bad, Bad Things (BBT) Are Happening (Mogambo)

[Tace]

Richard Daughty, the angriest guy in economics -- World News Trust

Nov. 22, 2006 -- These days I am paralyzed, consumed with dread at the unfolding economic drama, although I am somewhat mollified by the news that Total Fed Credit was down by a microscopic $400 million last week. So the Fed, I am somewhat relieved to note, is not going crazy with creating new excesses of money and credit with this particular method.

They did take the time to issue another $2.5 billion in actual cash, which seems weird, because when I go up to strangers and ask for money, they tell me they don't have any money. And then, when I get home, the family asks me for money, and I tell them the same thing! Like I said; weird!

And speaking of cash, which seems to be all anyone talks about around here anymore, Cash in Circulation is up $26 billion from this time a year ago, which is about $87 per man, woman and child in America, or about $350 for a family of four. You got yours? Me, neither.

And foreign central banks are still slopping around in the tons and tons of dollars that they end up with, as dollars are the principal export of the United States, to the tune of $850 billion a year in the trade deficit alone. And as these foreign central banks end up with the dollars until all the vaults and drawers and cabinets and closets are full of them, and they got rid of a few of them last week by putting another whopping $7.6 billion into their holdings of government and agency debt at the Fed, mostly because there isn't anything else to do with so damned much money, even though I generously offered to let them deposit the money with the First Mogambo Bank Of Earth (FMBOE), proudly serving this whole sector of the galaxy for almost three of your earth weeks, but they won't even return my calls.

But if you want to see something really, really eye-popping, then Savings/Other Deposits in the banks is the place to go, as they were up an astonishing $228 billion last week! In one week! This is huuuUUUuuuuge! A quarter of a trillion bucks appeared like magic in accounts at the banks! In one week! I guess this must be the arrival of the temporary Treasury accounts money that was recently authorized. But wow!

more

http://www.worldnewstrust.com/index.php?option=com_content&task=view&id=647

[whistle]

1. Uhmmm, is the Fed expecting that there will be runs on the banks?