World Economy

Zero Growth in US

Zero Growth in USZero Growth in US

Last August, the US Fed stopped creating new currency out of thin air and dumping it into the banking system. Which is another way of saying the US money supply stopped growing, The market Oracle reported. The latest batch of economic reports now implies zero growth for the entire first half of 2015. Beyond a certain point, an over-indebted society can’t function without continued infusions of new cash. With a US presidential election in full swing, everyone from Fed governors who hope to be reappointed (or hired by thriving Wall Street banks) to congressmen in uncertain districts to Treasury officials who like their jobs are concluding that austerity of any kind is a very bad idea. The June interest rate increase is now being walked back to September. And with nothing on the horizon to reverse today’s negative growth trends, the September increase will shortly be walked back to December and then replaced by hints of renewed QE in 2016.