AMERICA'
THE STANDARD OF LIVING OF US, ALL
The Following Charts,
contributed by Jerry Lobdill of the Money-Ethics List,
show how the ELITE have EXPLOITED THEIR POWER.
contributed by Jerry Lobdill of the Money-Ethics List,
show how the ELITE have EXPLOITED THEIR POWER.
</h2>The Rich Are Sucking Up Wealth at an Accelerating Rate
The Rich Are Sucking Up Wealth at an Accelerating Rate
by Jerry Lobdill of the
money-ethics list
September 1, 2002
The
following graphs show the rate at which wealth has been transferred to the
wealthy over the period from January 1959 through July 2001. The rate of
transfer began to increase rapidly after 1993.
The US Federal Reserve Board measures the money supply using the following
definitions.
M1 = Money that can be spent immediately. Includes cash, checking accounts,
and NOW accounts.
M2 = M1 + assets invested for the short term. These assets include money-
market accounts and money-market mutual funds.
M3 = M2 + big deposits. Big deposits include institutional money-market
funds and agreements among banks.
From Feb ’97 to July ’01 M1 grew by $0.033 billion per month
while M3 grew by $50.52 billion per month.
The graph below shows the ratio of
M3 to M1 vs month. It is really interesting, how the ratio decreases from about
5.5 to 3.8, before really taking off, as the bubble of the 90's took over.
The assumption of my analysis is that the very wealthy
convert their loot from M1 to M3 because it is not needed to buy their daily
bread and they need to put it into assets that are thought to hold value best.
The Rich Are Sucking Up Wealth at an Accelerating Rate
by Jerry Lobdill of the
money-ethics list
September 1, 2002
The following graphs show the rate at which wealth has been transferred to the wealthy over the period from January 1959 through July 2001. The rate of transfer began to increase rapidly after 1993.
The US Federal Reserve Board measures the money supply using the following
definitions.
M1 = Money that can be spent immediately. Includes cash, checking accounts,
and NOW accounts.
M2 = M1 + assets invested for the short term. These assets include money-
market accounts and money-market mutual funds.
M3 = M2 + big deposits. Big deposits include institutional money-market
funds and agreements among banks.
From Feb ’97 to July ’01 M1 grew by $0.033 billion per month
while M3 grew by $50.52 billion per month.
The graph below shows the ratio of
M3 to M1 vs month. It is really interesting, how the ratio decreases from about
5.5 to 3.8, before really taking off, as the bubble of the 90's took over.
The assumption of my analysis is that the very wealthy convert their loot from M1 to M3 because it is not needed to buy their daily bread and they need to put it into assets that are thought to hold value best.