[silverman]

Fighting Credit Deflation With Credit Inflation (source: privateer #614):
The US central bank has expanded credit more than at any time in the past seven decades! So-called “assets” on the Fed's balance sheet expanded by $US 285 Billion last week to $US 1.498 TRILLION. This was the biggest one week increase EVER by the Fed according to JPMorgan Chase & Co. The Fed
is interposing itself into the US money and financial markets directly by doing the lending which the commercial banks are failing to do. This is lending as a last resort with a vengeance. The Wall Street Journal has reported that: “On Thursday, October 2, the Federal Reserve released the latest data on its
balance sheet, which has ballooned by some $US 500 Billion to $US 1.5 TRILLION in the past month.” Over the last six or seven weeks, the Fed’s balance sheet has doubled. This Fed data is of extreme importance. Were the Fed to continue to expand its balance sheet at a monthly pro-rata rate of $US 500 Billion, in a year its balance sheet would balloon to $US 7.5 TRILLION. This is an impossible sum because under the “fractional reserve”, it would enable the commercial banking system to inflate credit to the even more impossible sum of $US 75-90 TRILLION piled on top of the other US bank credit.

greetings, silverman