Cash Assets of Commercial Banks Are Soaring

The following table continues to reflect continued weakness in commercial bank lending. Particularly alarming is the sharp rise in cash assets as a percent of total bank credit (Cash%TBC). The blue arrow reveals that CASH%TBC is approaching 16%. This is the highest level since the onset (acceleration) of the debt crisis in 2008. This is an immediate attention grabber. Commercial banks are hoarding cash assets. $1495 golden question is why and why now? Gold and silver, often inaccurately portrayed as relics of past monetary systems, are in response to reality and rational decision making.

Joe Walsh once wrote in the song Good Man Down, "Well it’s hard to keep a good man down." Gold is today's good man.

Total Bank Credit of Commercial Banks in the United States:


Source: federalreserve.gov