Looking for something in particular?

Credit Growth Slows, Vulnerabilities Increase

In the 21st Century, when there is no longer any difference between money and credit, Credit Growth drives Economic Growth. In the new Macro Watch video, we look at who has been lending the money to fund the credit growth and where their money comes from. We then look ahead to see who will have to lend the money in the future.

What we discover is a growing risk of a new systemic banking sector crisis and an economy increasingly dependent on credit creation – rather than savings – to fund itself. These findings highlight just how vulnerable the economy and the financial markets are if the Fed now begins to increase interest rates.

You will also be interested to know that credit growth slowed again during the first quarter, which helps explain why the economy contracted by 0.2%.

If you are a Macro Watch member, log in now and watch “Who Will Lend The Money To Drive Economic Growth?”

If you have not yet joined, click on the following link:


For a 50% subscription discount worth US$250, hit the “Sign Up Now” tab and, when prompted, use the coupon code: lenders

You will find more than 16 hours of Macro Watch videos available to watch immediately. A new video will be added approximately every two weeks.

One comment

  1. As always Richard very interesting.

    One place that might be able to absorb more credit is the banks. They have about $2.5 Trillion parked at the Fed earning only 0.25%. They can certainly absorb new Treasury issuance for years. Note that since QE ended, excess reserves have fallen. From 2.75 Trillion in Jan 2015 to $2.46 Trillion now.

    But beyond buying Treasuries and US Agencies, they may not be able to find credit worthy borrowers.

    2015-01-14 2753.903
    2015-01-21 2722.392
    2015-01-28 2665.153
    2015-02-04 2684.263
    2015-02-11 2536.607
    2015-02-18 2457.419
    2015-02-25 2328.963
    2015-03-04 2522.095
    2015-03-11 2688.257
    2015-03-18 2782.935
    2015-03-25 2706.627
    2015-04-01 2667.344
    2015-04-08 2744.497
    2015-04-15 2793.314
    2015-04-22 2679.047
    2015-04-29 2593.777
    2015-05-06 2595.402
    2015-05-13 2619.317
    2015-05-20 2635.118
    2015-05-27 2510.791
    2015-06-03 2444.765
    2015-06-10 2654.281
    2015-06-17 2621.304
    2015-06-24 2530.324
    2015-07-01 2457.406

Leave a Reply