The light blue vertical lines are just to point out the relationship between rates and MZM...
Rates rise and MZM contracts...Rates are lowered and MZM expands...
Debt backed by debt Fractional reserve banking, to be sustained from this point means that MZM growth must grow faster and faster exponentally like it has been
since the early 60's...
Can Rates be dropped past zero faster and faster exponentally faster and faster?
The answer is NO...that is impossible...
But to sustain the current reality MZM must begin moving straight up...forever...
1776 to 1991 MZM growth 2 Trillion in 215 years
1991 to 2000 MZM growth 2 Trillion in 9 years
2000 to 2003 MZM growth 2 Trillion in 3 years
So from now until the end of 2004 MZM must grow by 2 Trillion and after that it must grow by 2 Trillion in 3 months then 1 month then 1 week then 3 days then 1 day then 8 hours then 2 hours then less than an hour and so on and so forth until we are down to nanoseconds and beyond...
Or the System will collapse...the end
Try all you want to deny it...the dawn of economic doomsday is upon us...
Rates across the spectrum must crash to sustain growth...Mortgage rates especially...and that will only buy a few more months to live in "THE GOOD OLD DAYS"
Peek at the Commercial and Industrial Loans Chart at all Commercial Banks. The chart indicates demand for Commercial and Industrial Loans have never recovered from the 2001 recession and continue to slide lower and lower. An ominous sign to say the least.........
Business Loans 1
Even more revealing is the 2000 to 2003 chart below:
Business Loans 2
"We are completely dependant on the commercial banks. Someone has to borrow every dollar we have in circulation, cash or credit. If the banks create ample synthetic money we are prosperous; if not, we starve. We are absolutely without a permanent money system.... It is the most important subject intelligent persons can investigate and reflect upon. It is so important that our present civilization may collapse unless it becomes widely understood and the defects remedied very soon."
--Robert H. Hamphill, Atlanta Federal Reserve Bank
Consumer loans look to be topping out....uh oh!
The argument for real estate investment is a good one, or should I say "has been" a good one since 1947......percentage of new real estate loans from prior year is turning down indicating a possible top is in the making for real estate loans and growth.
Real Estate Loans
Total Loans and Investments at all Commercial Banks moving sideways with prior annual percentage in strong decline.
Looks like deflation dead ahead to me! How say you?