'Nightmares at hyper-speed
By The Mogambo Guru
The astonishing news to me was that the US Federal Reserve has pledged to plow US$540 billion into the money market, which is composed of very short-term debt, which is, as I already said, pretty astonishing since the total money market is about $3.5 trillion, and which has had (according to Doug Noland in his Credit Bubble Bulletin) "a year-to-date expansion of
$423 billion, or 16.8% annualized". And in an odd bit of symmetry to the just-pledged $540 billion, he goes on to report that "Money Fund assets have posted a one-year increase of $566 billion (19.1%)." And now they need half a trillion dollars? Half a freaking trillion?
And since we are talking about things that are astonishing, get this: Total Fed Credit jumped by another $63.2 billion last week! I was going to try and add up the astonishing amounts of credit that the Fed has cooked up in the past month or so, but I am so Scared Out Of My Freaking Mind (SOOMFM) at what I might find that my hands are shaking too much to handle a calculator. That's my excuse, anyway, and it's a lot of work, besides.
Naturally, being the lazy little coward that I am, I decide to simply abandon the task and instead run like a scared little rabbit to the Mogambo Bunker Of Invincibility (MBOI) while I still have enough coordination in my hands to lock and bolt the door, adjust the Security Settings to "Repel Boarders" and put a slice of pizza in the microwave with which to calm my Frazzled Freaking Nerves (FFN) at all this monetary expansion.
Afterward, I remembered that I had intended to add up all the credit that those filthy bastards at the Federal Reserve have created lately, and I shuddered anew at the prospect of the work involved, and of what I would find.
But there is something in the Cosmic Force that wants me to see this, as Doug Noland's Credit Bubble Bulletin was still on my computer, and there, big as life, I read not only that "Federal Reserve Credit expanded another
$63.2 billion to a record $1,803 billion", but that this latest whopping glop of credit from the Fed has reached "a historic six-week increase of
$915 billion." Yow!
Almost a trillion dollars of new credit in six weeks! Gaaaahhhh! My hands now mysteriously clenched into Mogambo Fists Of Outrage (MFOO), I am forced to clutch a pencil between my teeth and try to laboriously calculate that if $1,803 billion in Federal Reserve credit is up $915 billion in six weeks, then the percentage change is, ummm, wait a minute, ummm, carry the one, ummmm, well, the percentage change is, ummm, well, who the hell cares what the damned stupid exact percentage is when you can just freaking LOOK at the problem to see that TFC has about doubled? Yow! A 100% gain! In six weeks!
My brain is staggered! In six lousy weeks, all of the total credit in the banking system created by the Fed since 1913 was almost instantly (poof!) doubled! Gaaaahhhh! We're freaking doomed!'
$423 billion, or 16.8% annualized". And in an odd bit of symmetry to the just-pledged $540 billion, he goes on to report that "Money Fund assets have posted a one-year increase of $566 billion (19.1%)." And now they need half a trillion dollars? Half a freaking trillion?
And since we are talking about things that are astonishing, get this: Total Fed Credit jumped by another $63.2 billion last week! I was going to try and add up the astonishing amounts of credit that the Fed has cooked up in the past month or so, but I am so Scared Out Of My Freaking Mind (SOOMFM) at what I might find that my hands are shaking too much to handle a calculator. That's my excuse, anyway, and it's a lot of work, besides.
Naturally, being the lazy little coward that I am, I decide to simply abandon the task and instead run like a scared little rabbit to the Mogambo Bunker Of Invincibility (MBOI) while I still have enough coordination in my hands to lock and bolt the door, adjust the Security Settings to "Repel Boarders" and put a slice of pizza in the microwave with which to calm my Frazzled Freaking Nerves (FFN) at all this monetary expansion.
Afterward, I remembered that I had intended to add up all the credit that those filthy bastards at the Federal Reserve have created lately, and I shuddered anew at the prospect of the work involved, and of what I would find.
But there is something in the Cosmic Force that wants me to see this, as Doug Noland's Credit Bubble Bulletin was still on my computer, and there, big as life, I read not only that "Federal Reserve Credit expanded another
$63.2 billion to a record $1,803 billion", but that this latest whopping glop of credit from the Fed has reached "a historic six-week increase of
$915 billion." Yow!
Almost a trillion dollars of new credit in six weeks! Gaaaahhhh! My hands now mysteriously clenched into Mogambo Fists Of Outrage (MFOO), I am forced to clutch a pencil between my teeth and try to laboriously calculate that if $1,803 billion in Federal Reserve credit is up $915 billion in six weeks, then the percentage change is, ummm, wait a minute, ummm, carry the one, ummmm, well, the percentage change is, ummm, well, who the hell cares what the damned stupid exact percentage is when you can just freaking LOOK at the problem to see that TFC has about doubled? Yow! A 100% gain! In six weeks!
My brain is staggered! In six lousy weeks, all of the total credit in the banking system created by the Fed since 1913 was almost instantly (poof!) doubled! Gaaaahhhh! We're freaking doomed!'
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