Money Supply Growth Continues to Outpace Credit Creation

The transformation of the U.S. money supply continues on the same path that began in 2008. Either through debt destruction (deflation) or the swapping of Federal Reserve Notes for debt assets, the ratio of credit to fiat is collapsing. There is still a long way to go before this transformation creates to inflation. The credit destruction will continue though, until the economy heads back towards the ratio of credit to fiat at start of the credit bubble in the 1970s.