Game is over. In 2009 US-debt (55 Trillion Dollars) matched with GWP (Gross World Product, 58 Trillion). It is incomprehensible but true: America’s total money supply (M3) is around $15 trillion while the US national and private debt total around $55 trillion. How is America paying an existing $55 trillion in debt with a total of $15 trillion money supply? The US is short $40 trillion only this year. Where will that money come from?
We have to keep in mind that the GDP includes the mad loans to the private sector and the so-called bail-out of Wall Street fraudsters. Thus, the GDP figures do not reflect real economic growth. If you keep your eye on the M3 numbers, you will see that the gap between M3 and the total debt number equals an inevitable dollar collapse.
Societe Generale's uber-bear Albert Edwards said the Fed and other central banks will be forced to print more money whatever they now say, given the "stinking fiscal mess" across the developed world. "The response to the coming deflationary maelstrom will be additional money printing that will make the recent QE seem insignificant," he said. (Telegraph, London, 27.06.2010)
"Whom the gods would destroy, they first make mad."
