Chart Of The Week: Monetary Chaos In The Bubble Years

Via Sean Corrigan of Diapason Commodities

Here we show the divergence in sigmas from the mean of the stable, well-behaved, 43-year distribution laid out between 1952-1974 of the sectoral share of total domestic US holdings of money (currency + demand depos) which took place over the last wild, decade and a half of bubble and bust and outrageously suppressed interest rates...



...apart from the sheer scale of the disruptions involved since 'Irrational Exuberance',  note the underlying message that, given that they hold a higher fraction of the stuff than has traditionally been the case,  if you want to 'mobilize' the money in existence now, it is the willingness to do so of Non-financial BUSINESSES (both corporate and non-corporate) you need to encourage, a finding which further supports our oft-expressed contention that it is not the level of interest rates or currency parities, but the extreme degree of regime uncertainty which is the enervating factor and that this last is as much to blame for the current, sub-par recovery as it was in the FDR/Morgenthau/Eccles 1930s - and for similar reasons relating to the stultifying effect of an excess of overactive, arbitrary political intervention amid a patently incomplete liquidation of the mistakes of the prior Boom!!!