11.30 While America Ate and Shopped Mini-Crashes Rocked the Markets

While Americans ate, partied, and shopped until their credit cards cried ‘uncle,’ markets around the world experienced a mini-crash which despite the protestations of the CNBCBBGFBN propaganda and infomercial sales forces will have consequences for the American economy and indeed the future of our consumer and debt driven economy. One chart sums up the coming crisis but it is not one that will be publicized by the mainstream infomercial financial media nor many if any mainstream economists:

Why is this chart of the monetary base expanding rapidly (and now contracting slightly) versus the M2 Monetary Velocity so important? It screams deflation despite an attempt by the Federal Reserve and other central banks around the world to create demand and thus create inflation to force economic expansion. The Keynesian theory of economics is in its final death throes but the reality is that instead of releasing the ties that bind the banks and governments of the world are in fact doubling down and increasing their stranglehold on capitalism by increasing their interference of normal economic activity by adding on to their command control economic system.

This post was published at John Galt Fla on November 30, 2014.