DEFLATION AND WORLD MONEY SUPPLY!

THE PROBLEM WITH THE WORLD WIDE DELEVERAGING OF THE WORLD ECONOMY IS THAT THE MONEY SUPPLY CAN EXPAND THE GAP.  WORLD WIDE DEFLATION IS THE DRIVING FORCE AND LARGE SUPPLY OF MONEY DISTORTS THIS WORLD EQUILIBRIUM OR NEW NORMAL.

AT THE LAST COUNT, THE THE COLLECTIVE ASSETS OF THE WORLD'S LARGEST THOUSAND BANKS TOTALLED $96.4 TRILLION. THE 10.9 MILLION HIGH NET WORTH INDIVIDUALS HAVE A COMBINED WEALTH OF $42.7 TRILLION AND IS GROWING AT 10 % A YEAR.  THERE ARE CURRENTLY 1,210 BILLIONAIRES WITH A TOTAL NET WORTH OF $4.5 TRILLION. CENTRAL BANKS CONTROL THE MONEY SUPPLY AND CLASSIFY THIS WITH MO, MB, M1, M2, M3. 

THE WEALTH OF NATIONS HAS TOTALED AROUND $150 BILLION NOT INCLUDING CENTRAL BANKS ELECTRONIC CREATED MONEY WHICH COUNTERACTS WORLD WIDE DEFLATION.  THE PARADOX IS THAT DELEVERAGING IS THE NEW NORMAL AND STILL HAS 5 YEARS LEFT TO REDUCE WORLD WIDE INVENTORIES.  CONSEQUENTLY, THE STOCK MARKET RALLIES ARE WEALTH RALLIES AND NOT ECONOMIC MARKET RALLIES.  THE WORLD OF STOCK MARKET WEALTH CREATES THE ZERO SUM WEALTH OF THE ECONOMY BUT CREATES THE REAL GROWTH OF WEALTH BY DYNASTIC FAMILIES.