Maloney says total cred market debt is collapsing. That video is from Dec. 2011. Is it really? We have been told deleveraging is taking place.

Lets take a look-see. I'll let readers decide for themselves.

Total Market Debt Owed

Hmmmmmmm. Base money expanding at 6% (this just the portion of the deficit that the Fed is creating new money to pay, not the increase in bank reserves. Excess bank reserves represent "future potential" inflation of the money supply should the banks start lending more via fractional reserve Maloney talks about). Total credit market debt expanding................... As Mish Shedlock would say about deflation, if it looks like a duck, walks like a duck, swims like a duck and quacks like a duck............ I would say this duck looks more like an inflation duck to me. Sure kind of explains the price rises we are seeing.

More money supply charts for your viewing pleasure. Note the one in the upper left corner. the green shaded area is the M3 money supply level. The line chart is the increase or decrease amount at any point in time. I don't see a plummeting money supply. I don't see a plummeting credit supply. Like the old lady in the old Wendys "where's the beef" commercial, "Where's the deflation?!"

John