Credit Crunch Britain as money supply falls to 3.5%

Private Sector money supply growth M4 fell to 3.5% year on year in October compared to an average level of 9% over the last three years. In the first quarter of 2008, growth was over 8%, falling to 6.7% in the second quarter and 5.5% in the third quarter. According to latest data from the Bank of England.

Someone is turning the screw, it looks like a credit crunch and feels like a credit crunch.

The M4 private sector is the UK private sector other than monetary financial institutions (MFIs)).

M4 is defined as, sterling notes and coin; sterling deposits, including certificates of deposit; commercial paper, bonds, FRNs and other instruments of up to and including five years’ original maturity issued by UK MFIs; claims on UK MFIs arising from repos (from December 1995); estimated holdings of sterling bank bills.
Definitions

Comments

[Jason]

Pumping up the money supply should melt a credit freeze. The Fed chairman faces huge obstacles
in trying to restart the credit engine and get maxed out consumers spending again. Given the
scale of the Fed's interventions, it should be weakening the value of the dollar and setting
us on a course toward inflation. Inflation happens when prices rise. Deflation happens when
they fall. In this December's dark economy, falling prices for gasoline, cars, and clothes and
just about anything would seem like a silver lining.

http://nomedals.blogspot.com