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Sunday, May 18, 2014

CATCH AMERICA NOW, IT'S FALLING. THE GREAT COLLAPSE OF AMERICA HAPPENING RIGHT BEFORE YOUR EYES

Already I've have show you this chart:



And this chart, which shows the Greatest Depression ever suffered by Americans, six years running now.




But first, if you need to read about FRBUs, check out INFLATION REVEALED! "REAL GDP" AND FEDERAL RESERVE BANK UNITS


Now I want you to see these:



In the above, you can see how many dollars worth of GDP gets produced relative to a dollar's worth of total bank credit.

As you can see, recession happened between 1972 and 1974, with resumption of the 1971 leverage through the years 1976 to 1985. Leverage shrank a bit and found a new level between 1987 and 1996.

Since 1996, GDP to credit leverage has fallen from $2.28 at the end of the second quarter in 1996 hitting a low of $1.56 at the low of the Greatest Depression between 2008 and 2009, Since then GDP to credit leverage seems to have found a new low level.

This is what the "new normal" is all about.



Here you can see that when the economy runs, credit runs as fraction of GDP, lifting GDP. In 2004 featured the death cross moment.

Perhaps this is why politicians distract Americans with silliness de jour whether the Ukraine, gay marriage, Keystone XL or what have you.