Dear Sirs:

Please allow me to contradict your contention that Britain’s new Chancellor of the Exchequer, Rachel Reeves, should follow America’s supposedly successful formula set by Treasury Secretary Janet Yellen. In January 2020 the US Monetary Base was $3.4 trillion. In May 2024 it was $5.7 trillion, a $2.3 trillion increase. The Monetary Base is the so-called “foundation” of the money supply, upon which the banks pyramid bank credit money. In January 2020 M2–checking, savings, and short-term CDs held in the banking system–was $15.4 trillion. In November 2023 it was $21.0 trillion, a $5.6 trillion increase. In the first quarter of 2020 GDP was $21.7 trillion. In the first quarter of 2024 it was $28.3 trillion, a $6.6 trillion increase. It is clear that America’s so-called boom is nothing more than money printing by the Fed and credit expansion by the banks. Expect worst numbers this year, since the federal budget deficit, which will be funded primarily out of money printed out of thin air, will exceed three trillion dollars.

Patrick Barron

20 McMullan Farm Lane

West Chester, PA 19382

610-793-3605