USA enters the double dip

For those of you who have read AEP’s latest Armageddon story in the Telegraph, though the details of his ‘monetary’ analysis are, of course, suspect, the truth is that US money supply – properly measured – has slowed alarmingly of late, making the deceleration from last year’s peak one of the largest in the record. Regular readers will know that we set great store by such indicators and that we have been saying for some time that the real economy should be starting to feel the effects by the end of the third quarter.