Can you say inflation? This is scary.

This chart will speak more words than I ever could.

Adjusted Money Base of the United States




Scary?

LOL...what can you even say about this?

TURN OFF THE PRESSES!!!!

What is the Monetary Base you might be wondering? Well, it is the sum total of the money we currently have circulating in the economy. A few key indicators: On September 1st, 2009 we had $936.138 billion Dollars in circulation On December 1st, 2009 we had $1692.552 TRILLION Dollars in circulation In other words, over the course of 3 months, $756 Billion in brand new dollars was put into circulation.

www.puma08.com...


[edit on 28-1-2009 by David9176]

[edit on 28-1-2009 by David9176]

[edit on 28-1-2009 by David9176]

They need to change the side bar billions of dollars to trillions of dollars. Then it wont look so freek'n scary. But I must admit we have been seeing the effects of this in Northern California since last summer. Odd that they are just now releasing the data all over the nation.Not to mention the MSM starting to actually report that its heck in a basket out here in the real world.

It's going to be up to the people to put their foot down at some point. The banks are hording all the money and sending the stock market up and down at will. It is very easy to confirm if one just watches the news at the bottom of the quotes page on the UP days it all "banks" bringing the markets back up with the help of the gov in what ever country. On DOWN days there isn't one mention of the major banks or the accounts they run. Just the credit houses bringing it down etc.( We are being conditioned to trust them to save the world with all this junk they are putting out.)

The truth be told the markets are in no way reflecting what is going on at street level where we all live and play. They are keeping the markets looking like they are surviving to keep people from panicking till they no longer have a choice. Whats down here in the real world is massive lay offs, business' closing and inflation starting to take a hold on many things we buy everyday no matter where we live.

I'm not a financial expert or anything, but could the 700 or so Billion be the previous bailout pkg? I mean, the US doesn't have a bank acct to pull it out of, it HAS to be printed, right?

Well, there ya go.

reply to post by MajesticJax


I'm not questioning where the printed money went to, this graph is just showing the increase of our money supply which is almost of the charts. I didn't know what the current supply was before hand. I had no idea it was this drastic of a change.

We have almost tripled the money supply since 2000.

In other words, over the course of 3 months, $756 Billion in brand new dollars was put into circulation.

I was referring to this statement. How exactly does money get "put" into circulation. As loans by fed banks to other banks to corps/individuals
correct?

Someone please enlighten me.

** the numbers your reporting seem screwy...
a 3 month increase: $936Bn - $1692Tn is not a mere $756Bn more...
its more like 900Trillion more $$$ = Impossible !
[there needs a dot/point -> .

Did anyone notice the blatant error in this:

On September 1st, 2009 we had $936.138 billion Dollars in circulation On December 1st, 2009 we had $1692.552 TRILLION Dollars in circulation In other words, over the course of 3 months, $756 Billion in brand new dollars was put into circulation.

Since those dates in 2009 have not yet occurred.....

The Federal Reserve has been producing money out of thin air since it started.

All the banks issuing credit cards - where do you think that money really comes from? Sure, it's backed eventually by the Federal Reserve, but thanks to the power of 'Fractional Reserve Banking' - they can just keep printing - and controlling - the flow of money.

On Google video there is an EXCELLENT documentary on this very subject, and how the banks gained control of America and every 'free' nation on earth. It's a long documentary (3.5 hours!), and if you can get through through the first half-hour of the grounding, it begins to get REALLY interesting! These guys in the video actually predicted the very meltdown we are witnessing now, with detailed explanations and proof of how and why.

This video is even more important than ever to watch, and you can see it right here.

Google Video Link

Enjoy!

reply to post by redhatty


I noticed this as well after i posted. It's supposed to be 2008 of course. Link to St. Louis Fedresearch.stlouisfed.org...

Latest Observations: Date 2008-08-01 2008-09-01 2008-10-01 2008-11-01 2008-12-01 Value 870.978 936.138 1135.825 1481.946 1692.552

reply to post by David9176



I saw that the other day, and what still amazes me, is people refuse to believe we are eventually in a few months going to go into hyperinflation.

What also gets me, is people still listen to the MSM about how things are going to get better and the analysis they will have, that says, the dollar will remain strong all year. They advise people to hoard cash and they say "definitely DO NOT BUY GOLD" ! That makes me very mad... because they are PURPOSELY misleading people!

The only way - anyones money right now will retain and grow in value is by getting out of dollars and purchasing precious metals!

reply to post by questioningall


Something has to happen.

More money in circulation and larger debt.

I'm really haven't a tough time understanding what the government is doing. It doesn't make sense to me.

Does inflation help us pay the ridiculous debt we have? Does the debt inflate along with the currency?

And most important...Am i losing my mind?!?!?

Originally posted by questioningall
I saw that the other day, and what still amazes me, is people refuse to believe we are eventually in a few months going to go into hyperinflation.

Heres what it looks like - not a pretty sight:
www.abovetopsecret.com...

reply to post by David9176


Actually the chart shows 1.6 trillion.

That 1.6 trillion is just a puddle in the ocean, since investment losses exceed $10 trillion in the same time period. That is why inflation will not be a worry for quite some time. It will take the pinting of more than was lost for it to be inflationary. unlessasset values jump quickly we are headed for a long period of falling prices.

reply to post by disgustedbyhumanity


I know that the housing market values are lowering but I have not noticed prices in other places getting lower except for gasoliine and that is starting to creep up again.

If anything they seem to be going up.

And if prices do continue to go down, wouldn't that help the economy instead of hurt it as things would be more affordable?

Any intelligent human being with an ounce of understanding of the Federal Reserve and the Fiat Money System knew this.

Scarcity gives the USD value.
If there is no scarcity, there is no value.
Simple as that. (well kind of)

I made a thread a while ago about the spending Bush did/caused through things like the War on Terror and the Bailout and I said it was going to inflate the living daylights out of the dollar. Few responded, I guess because it didn't effect them yet or they didn't get it. Maybe that purty graph you found will make better sense to people.

Wait until this new bailout gets into circulation (will take quite a few months, as I'm pretty sure the Bush/Paulson bailout hasn't even completely made it into circulation).

The country has been ruined financially. Everyone asks the question "How do we fix this?" but that is a question that should have been asked YEARS ago. Now the only relevant question is "What implications will the total collapse of the US financial system have on the US and the rest of the world?"

Sit back and watch it all crumble folks, that's all we can do now. It IS too late. Probably should have not watched so much TV and played so many games and spent more time trying to understand the Fiat Money System and the Federal Reserve's/US Gov't manipulation of that system... we've earned the term sheeple...

Now...This increase in money supply(Roughly 70%) is not a bad thing as long as interest rates STAY at record lows...But we all know they won't...Can anyone tell me what happens when those interest rates shoot back up?

And they will, mid 2009, when all that foreign money starts leaving. It'll start with bonds and quickly spread everywhere else.

And then we have inflation. And in this economic climate, inflation, even just 70s style inflation, would destroy us utterly.

But it looks like we're in for hyperinflation. If anyone still doubts this formula...Then please quote me on it later. I'm tired of people thinking the FED is anything but irresponsible with monetary policy.

Just finished reading Peter Schiff's book, "Crash Proof". He provided an excellent analysis of inflation and how the government tries to keep the data secret and explain it as some mysterious force they have no control of.

In short the FED is responsible for inflation when they print money or influence the creation of credit. If people actually realized this, they'd be quite angry at the FED.

Inflation IS the creation of money and credit. The increase in food, energy, and gas prices are a side affect.

The published inflation numbers in the consumer price index are scewed to not look at food and energy costs as they are "too volatile". As well, items that increase in price may be replaced by something cheaper reflecting the consumer's quest for good deals. The real effect though is to mask a lowered standard of living. As an example the CPI may be calculated using a BMW as a car cost, steak as a food cost, and gas for energy. If costs go up too much, the above items may be replaced by a Yugo, dog food, and candles respectively. The CPI would not change but the person's standard of living certainly would.

The government no longer publishes the money supply number (M3 is it?) saying that it is not useful data, when in fact it is a true indication of inflation.

[edit on 28-1-2009 by ghofer]

Originally posted by redhatty
Did anyone notice the blatant error in this:

On September 1st, 2009 we had $936.138 billion Dollars in circulation On December 1st, 2009 we had $1692.552 TRILLION Dollars in circulation In other words, over the course of 3 months, $756 Billion in brand new dollars was put into circulation.

Since those dates in 2009 have not yet occurred.....

Someone needs to let that guy last week who claimed to have discovered who John Titor really is that he may want to check out the David1979 guy before he makes any announcements. Clearly a man from the future walks amongst us!

To the OP: This is a find. Notice I am not asscoiating the words "great," "nice", or even "good" with the word "find." Props to you, both middle fingers to Uncle Sam...

Originally posted by David9176
reply to post by disgustedbyhumanity

 

I know that the housing market values are lowering but I have not noticed prices in other places getting lower except for gasoliine and that is starting to creep up again.

If anything they seem to be going up.

And if prices do continue to go down, wouldn't that help the economy instead of hurt it as things would be more affordable?

How about the world stock markets being down 40% +? The majority of people's retirement and personal savings is in the stock markets. Even gold is down 20% or so. Bonds have taken serious haircuts as well. And how about the farmers who are getting 1/3 of what they were getting for their crops a year ago?

The total amount of money in the system has totally dried up. That is why we won't be seeing inflation for many years. The drop in commodity prices and transportation cost will end up feeding down to grocery prices. They just need to clear out their more expensive inventory first.

Here is the current H.6 Release from the Federal Reserve

Now I realize that this is a bit confusing, and as the poster before me said, M3 is no longer reported, but if you look at the non-seasonally adjusted M1 currency numbers and add the demand deposit numbers, there are about 1.25 trillion actual dollars in circulation.

That comes out to about 4000 FRNs per person in the US.

BUT... much of the FRNs are held by people (countries and individuals) in foreign nations - remember the USD is the world reserve currency.

While the NY Fed supply looks large, remember that in the past year, we have lost almost 40% (maybe more) of the wealth in this country, so that is in effect a balance to that expanding chart from the NY Fed.

10's of trillions of $$ have been lost in housing alone. Not to mention the 401Ks that lost 40% or more of their value.

Millions of lost jobs add to the loss of wealth.

So when you look at that NY Fed chart, realize that what you see there is actually the debt being placed upon you and your progeny. The bailout is factored into that number, even though those dollars are not and will never be printed.

Hyperinflation can only occur with a corresponding inflation of workers wages. You cannot have a dollar worth a fraction of a penny if you keep making the same amount of dollars (Zimbabwe/Weimar). You MUST increase the amount of money a person makes so that they can still convert those pieces of paper into goods.

Until massive stimulus checks arrive in our hands - or we hear that we are going to make a LOT more money in our wages, hyperinflation cannot occur.

Regular inflation can occur though.