In the UK, GDP is said to trend long-term to an increase of around 2.5% per year, hence also the Monetary Policy Committee's figure for inflation target-setting.
Since 1963, the M4 money supply has grown by an average of slightly under 13.5% per year. So that would be about 11% p.a. relative to GDP.
This means that bank lending, as a proportion of GDP, doubles every 7 years.
How long can this continue? How long before we are completely robbed and enslaved? Or am I asking a fool's question?
5 comments:
You're clearly asking a fool's question :D. We should just be thankful that the bankers don't start using our heads in their polo matches.
Hi Matt - it's good to know oneself, even if it takes someone else to break the bad news. But mathematically, this couldn't go on forever, could it? And what happened before? How fast have the banks risen?
So glad you used the word 'usury' because that gives it its historical perspective.
Great blog. Just added a link on my blog:
Alice
http://ukhousebubble.blogspot.com
1933 seems as good a year as any for the FRB start date, Sackers.
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