O.T. - (horrible flow of funds / money supply releated article) (let's please NOT start discussing this stuff, since none of us know what we are talking about).
Here is a WSJ article about the latest data on "U.S. Total Nonfinancial Debt."
This is a number that is much larger than any of the so-called "M aggregates;" and according to some people who are actually smart enough to understand these sorts of things, is MUCH more relevant than, say, M3.
Note that the past few years' growth rate of Total Nonfinancial Debt has only changed by reasonably small percentages.
(Money supply growth rate figures swing around much more).
Also, note that the magnitude of the number we are talking about is larger than any of the M aggregates.
So, next time someone spouts off about "Look at the rapid growth of M2 or M3," you can answer back "Hey, how 'bout those figures on Total Nonfinancial Debt ? ..."
March 12, 1999
U.S. Nonfinancial Debt Expanded
At 7.1% Rate in Fourth Quarter
Dow Jones Newswires
WASHINGTON -- U.S. nonfinancial debt grew at a seasonally adjusted annual
rate of 7.1% in the fourth quarter, up from a revised 5.5% rate in the third
quarter, the Federal Reserve Board said Friday.
The Fed said debt held by the federal government grew at an annual rate of
0.7% in the fourth quarter, while private nonfinancial debt grew at a 9% rate.
Fourth quarter total nonfinancial debt outstanding borrowing totaled $16.129
trillion, including $3.752 trillion by the federal government and $12.376 trillion
by the private sector.
These figures were contained in a quarterly Fed report designed to provide
better data on domestic nonfinancial debt. The Federal Open Market
Committee adopted a 3% to 7% 1999 monitoring range for total nonfinancial
debt.
Nonfinancial debt includes borrowing by all sectors of the economy except
banks, thrifts, finance companies and other financial-service providers.
For all of 1998, total nonfinancial debt grew 6.3%, compared with a revised
5.1% in 1997 and a revised 5.2% in 1996.
Within private-sector borrowing in the fourth quarter, nonfinancial business
borrowing increased at an annual rate of 8.3%, compared with a revised 9.3%
the previous quarter. Household borrowing increased at a 10.2% rate,
compared with a revised 7.9% in the previous quarter.
State and local government borrowing increased at an annual rate of 6.4% in
the fourth quarter, compared with a revised 6.2% the previous quarter.
State and local borrowing is included in the total private borrowing figures in
the Fed report.
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