Federal Reserve Balances Decline

posted by Nima

February 4, 2009 · Posted in Monetary Economics 

Since the Federal Reserve released its balance sheet from December 18th 2008 reserve balances have steadily begun to decline. On that day they amounted to a total of $2.25 trillion. Since then they have dropped by roughly 15% to $1.99 trillion on January 29th.

At the same time retail sweeps have been falling since October 08. I have been talking about a resurgence of inflation since the money supply growth seemed to have exceeded the 3% mark lastingly. However, it looks like I called that way too early. It will be important to watch how the true money supply will develop over the next few months. Recent trends and data indicate that it might be headed back down and that all recent reflation attempts by the Fed could fail completely.

Deflation, it is true, is not easy to beat, if at all possible. It might work if the correction is a mild one. When faced with a global financial tsunami, it should be rather impossible.

Found this post helpful? Consider supporting the cause of economic education, freedom, peace and happiness. All donations will be used to advertise this blog online to as many people as possible.


… have no money to donate? No problem, there are other ways to promote the cause. Use the “SHARE” link below and share this post with friends and family!




Bookmark and Share

Related posts:

  1. Federal Reserve Bank – Balance Sheet (December 2008)
  2. Money, Banking and the Federal Reserve
  3. Federal Reserve Officials Lost in Mindless Blather
  4. Reserve Ratio at All Time High
  5. Federal Reserve Continues to Push on a String
  6. Federal Reserve Balance Sheet – April 30 2009
  7. The Federal Reserve, IRS & Legal Tender Laws – A Criminal Racket
  8. 100% Reserve vs. Fractional Reserve Banking
  9. US Poverty Rate – How the Great Society Programs Reversed its Decline
  10. US Money Supply – February 2009

Tags: , , ,

Comments

Leave a Reply




 

Subscribe without commenting