The Plebian

Pretty Economic Pictures for the Illiterate Masses

Without Precedent

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I would love to get some feedback in regards to the below graph from the St. Louis Federal Reserve.  My impression is that banks are clearly not facilitating the lending process.  How else can you explain the current cycle of deflation? (refer to chart 2).  What will happen to once all this money is lent out and leveraged by the banks is one to ponder.  Whatever the inflati0n/deflation outcomes, let’s hope for price stability (cite Zimbabwe).



Alternate CPI Chart


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