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Adjusted Monetary Base Goes Vertical

Tyler Durden's picture





 

Just in case there was any confusion in the interpretation of the M2 chart, here is the latest just released Adjusted Monetary Base.

A succinct reminder from Mises Institute: "The Adjusted Monetary Base is the one monetary component completely under the control of the Federal Reserve." As we expected a month ago when predicting the end of the SLP program, look for this chart to surge to about $2.7 trillion as the combination of SLP unwind and another $500 billion in UST purchases adds another $600 billion to the BASE. The increase of $142 billion in the last two weeks is the 5th largest Adjusted Monetary Base expansion in history. The ongoing verticalization of this chart may result in some further acuteness of inflationary expectations.

And some other pretty charts:

 


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Thu, 02/24/2011 - 22:00 | Link to Comment jesse livermoore
jesse livermoore's picture

got gold  ?

Thu, 02/24/2011 - 22:04 | Link to Comment Fox-Scully
Fox-Scully's picture

Does Rold Gold count?  At least its edible!

Thu, 02/24/2011 - 22:31 | Link to Comment floydian slip
floydian slip's picture

 

Im doing a gold and silver is money show (music) starting at 2am CT Friday morning and will last until around 6pm CT.

http://lunaticoutpost.com/radio.php

tune on tune in and drop some acid, you'll enjoy it im sure

Thu, 02/24/2011 - 22:41 | Link to Comment Careless Whisper
Careless Whisper's picture

paper money is just paper. they just print it out. this silver is real money. paper money is not real. they just print it out from the computer. that is not money. paper money is just paper. you just give them paper. plus they just print it out.

... fifth grader.

http://www.youtube.com/watch?v=pba8C2haS68

are you college grads starting to get it ?

 

 

Thu, 02/24/2011 - 23:02 | Link to Comment Michael
Michael's picture
Dylan Ratigan asks Fleckenstein: Has the Federal Reserve caused the recent commodity inflation?

http://www.dailypaul.com/158092/has-the-federal-reserve-caused-the-recent-commodity-inflation

Thu, 02/24/2011 - 23:39 | Link to Comment chopper read
chopper read's picture

...I understand that we are entering QE2.5 covertly, now. 

Fri, 02/25/2011 - 02:14 | Link to Comment Harmonious_Diss...
Harmonious_Dissonance's picture

This chart looks like good healthy growth of the economy to me so by all means we should QE-it-up!

Thu, 02/24/2011 - 23:52 | Link to Comment Hedge Jobs
Hedge Jobs's picture

Ratigan is mostly on the ball with whats going on. Im suprised Imelt hasn't removed him yet.

looking at M2 Bernanke has well and truly laid the inflation egg, all that matters now is when does it hatch?

Its all about money velocity now.

Fri, 02/25/2011 - 00:31 | Link to Comment Michael
Michael's picture

News Flash;

Zionist Hollywood fire Charlie Sheen

"The production shutdown decision was a dramatic ending to a really fascinating day in which Hollywood witnessed a star's self-destruction. First, in a bizarre rant on The Alex Jones radio show this morning, Sheen called Lorre a "charlatan" and a "turd" and would only refer to him by his "real name, Chaim Levine." "Chaim, last time I checked, I spent close to the last decade effortlessly and magically converting your tin cans into pure gold," said Sheen, responding to a tongue-in-cheek vanity card Lorre recently posted on Men that ended with "If Charlie Sheen outlives me, I'm gonna be really pissed."

http://www.deadline.com/2011/02/cbs-and-warner-bros-pull-the-plug-on-two-and-a-half-men-for-this-season/

You can still hear the interview with Alex repeated every 3 hours over night. It was awesome.

http://www.infowars.com/audiobox.html

Thanks for the publicity Chaim Levine and go fuck yourself..

Long live Charlie Sheen.

Fri, 02/25/2011 - 01:00 | Link to Comment Alienated Serf
Alienated Serf's picture

he called out his boss, that is generally a bad strategy for anyone.  this is not a sanchez/thomas situation.  in any event, charlie and chaim can both kill themselves for all i care.  thx.

 

seiously dude, leave the pop culture off of ZH

Fri, 02/25/2011 - 01:02 | Link to Comment Michael
Michael's picture

I have no idea why bosses have been elevated to godhood. Charlie has more money than God. He doesn't give a fuck.

Fri, 02/25/2011 - 01:34 | Link to Comment asdasmos
asdasmos's picture

Why do you give a fuck? ....and why are you posting that shit here?

Fri, 02/25/2011 - 01:54 | Link to Comment Michael
Michael's picture

Why do people climb mountains?

Charlie Sheen. The Man with the biggest balls to stand up to the Zionist occupied entertainment industry. All thumbs up.

Fri, 02/25/2011 - 02:45 | Link to Comment Harmonious_Diss...
Harmonious_Dissonance's picture

^^^  Is this guy Michael some kind of KKK type? I'm getting that impression....

Fri, 02/25/2011 - 03:24 | Link to Comment Rodent Freikorps
Rodent Freikorps's picture

I think he is Alex Jones.

Fri, 02/25/2011 - 08:06 | Link to Comment Cash_is_Trash
Cash_is_Trash's picture

Michael just posts shit that isn't relevant to the topics most of us care about. Just some dumbass that believes there's a cabal in charge of every change and that we're headed into some NWO conspiracy.

Fri, 02/25/2011 - 08:17 | Link to Comment ColonelCooper
ColonelCooper's picture

Haven't you heard?  The new name of the site is, "ZeroHedge with TD and Michael". 

Michael posts some interesting shit sometimes, but 99% of the time it is OT, and it is always butted in so he can be the center of attention.

Fri, 02/25/2011 - 01:40 | Link to Comment Alienated Serf
Alienated Serf's picture

ZOMG!!! Michael!!! todd bridges just landed a role as scurvy prairate six on Pirates of the Carribean 438!!!!  Who wants some mimosas!!! i know I do!! whooooo!!! yeah!!! Go Todd!! Stick it to the Man!!! YEAH!!!

 

you punk

 

 

 

 

Fri, 02/25/2011 - 01:29 | Link to Comment Dr. Porkchop
Dr. Porkchop's picture

Calling out your boss is a bad idea for a wage earner like me. Charlie Sheen has fuck you money.

Fri, 02/25/2011 - 02:57 | Link to Comment GoinFawr
GoinFawr's picture

k, I dunno why you got junked there Dr., that was funny.

Fri, 02/25/2011 - 01:26 | Link to Comment Mad Max
Mad Max's picture

Does this have some connection to investing, the global financial crisis, or this particular article?  None is clear.  I can go to perezhilton if I start caring about such trivia.

Fri, 02/25/2011 - 01:42 | Link to Comment Alienated Serf
Alienated Serf's picture

This has a connection to the fact that Michael is a douche.

Charlie Sheen on ZH?!! really?!

Fri, 02/25/2011 - 01:58 | Link to Comment Michael
Michael's picture

It's fucking 1AM in the morning asswhipe. Lighten up.

Fri, 02/25/2011 - 02:03 | Link to Comment Alienated Serf
Alienated Serf's picture

so ESTcentric.  typical

Fri, 02/25/2011 - 02:17 | Link to Comment Michael
Michael's picture

I am well aware it is 10PM where you live. I count on you guys on the left coast to be here when the right coast is in bed.

Fri, 02/25/2011 - 02:39 | Link to Comment Alienated Serf
Alienated Serf's picture

actually i live on the east coast. i just thought your 1 am comment was telling of your own self absorption. all about you. tsk tsk.
well its 140 for both of us now, and work is not going to be fun tomorrow.

i look fwd to your next hollywood update.

peace.

Fri, 02/25/2011 - 02:43 | Link to Comment Michael
Michael's picture

Peace. Good Night.

Fri, 02/25/2011 - 02:02 | Link to Comment Red Neck Repugnicant
Red Neck Repugnicant's picture

 

...looking at M2 Bernanke has well and truly laid the inflation egg, all that matters now is when does it hatch? Its all about money velocity now.

 

Your opinion, as accurate as it is, runs counter to everything posted at ZeroHedge.  Supposedly, the egg already hatched. 

Both the authors and readers at ZH clearly believe that current price inflation in world-wide commodities is squarely Bernanke's fault, no matter what genuine supply/demand inequities exist and the true root causes of them. In the ZeroHedge universe, any mention of supply/demand or speculation is outrageous and instantly leads to a punishing barrage of goofy libertarian rhetoric from the trailer-park audience.  Mysteriously, the unused reserve accounts sitting at the Federal Reserve earning 00.25% interest has caused everything from the 2008 food riots in Bangladesh (before QE even existed) to cotton hoarding in China, food shortages in Algeria and even political revolutions in Africa.    

Not only has ZH has made it perfectly clear - both directly and implicitly - that the "inflation egg" has already hatched, Bernanke is supposedly also to blame for much of the rioting in the world. Of course, all the paranoid gloom/doom, apocalypse-dreaming, ammo hoarding, redneck libertarian lemmings just blindly believe whatever their ZeroHedge masters tell them, regardless of lunacy. And if the message is expressed via a cartoon?  Game over.  It's like quoting from Scripture.  

In many ways, the extreme devotion of the ZeroHedge goofballs reminds me of perma-goofy cultists dying in unison while waiting to catch the tail of some arbitrary comet.  Personal failures and unhappy lives can cause people to believe most anything, no matter how ludicrous.  For some people, it is so much easier to erroneously blame their oppressive over-lords (or catch the tail of a comet) than it is to assimilate themselves to the difficulties of life and society.   

No doubt about it, the inflation egg is incubating under Bernanke's ass, but it will never hatch until all the "printed" money begins to diffuse outside the closed loop between Washington and Wall Street - for some reason, that message is kept under lock and key at ZH. 

 

 

 

 

 

Fri, 02/25/2011 - 02:10 | Link to Comment Alienated Serf
Alienated Serf's picture

political cartoons, yes, yes, how ignorant.  they have never had much impact on events. thomas nast and the fall of boss tweed, no correlation whatsoever.

and the trailer park comments, very convincing.  

you are intelligent, i'll give you that.  you are useful for stirring up the weakminded and increasing pageviews.  useful idiot.

 

Fri, 02/25/2011 - 02:38 | Link to Comment Harmonious_Diss...
Harmonious_Dissonance's picture

Fuck yeas, almost sold my silver. Then I realized in 20 years with 12.something billion people in the world, Red Neck Repug's view of existance is FUCKING OBSOLETE. He prolly wont live that long. Edit: Me want more RNR posts, post haste! I feel better reading his posts, and almost regret digging my bunker. Everything is going to be O.K.

Fri, 02/25/2011 - 02:39 | Link to Comment Harmonious_Diss...
Harmonious_Dissonance's picture

P.S. yes the bunker is dug sideways from my parents basement where I live playing X-Box all day, fuck you, don't judge me.

Fri, 02/25/2011 - 02:43 | Link to Comment Harmonious_Diss...
Harmonious_Dissonance's picture

P.P.S. Bernanke is just a figurehead, howabout blame the FED monetary, neo-capitalist, kleptocratic mind-fuck that has mis-allocated capital and created the proplem of unsustainable populations hungry now?

Fri, 02/25/2011 - 03:00 | Link to Comment GoinFawr
GoinFawr's picture

@ AS

++

Fri, 02/25/2011 - 04:04 | Link to Comment asdasmos
asdasmos's picture

"

The Fed’s reaction will be as predictable as ever.

We already know that Chairman Bernanke exculpates the Fed for any blame in creating inflation either domestically or abroad. In fact, he refuses to even consider rising food and energy prices in his definition of inflation. Americans could be paying $50/pound for ground beef, but as long as their houses are still losing value, Bernanke doesn’t see an inflation problem. Meanwhile, they’re eating squirrel for protein while making payments on a mortgage twice as expensive as the house.

The truth is that Bernanke doesn’t know what causes inflation, so he can’t be expected to spot it, much less do something about it. Using the Fed’s own history as a guide, Bernanke will view rising commodity prices as a threat to GDP growth and a sign of pending deflation. That’s because the Fed is caught up in a ‘Phillips curve’ philosophy that only equates economic growth and prosperity with inflation. In short, Bernanke believes that slow growth and rising unemployment rates equate to deflation, despite plentiful contrary examples in history.

Since he believes rising commodity prices are deflationary and have nothing to do with his own loose monetary policy, the Fed is likely to expand its balance sheet to a greater degree. The fact that the Fed’s massive money printing effort is the progenitor of global food riots completely escapes him. As more damage is done, the Fed will use the resulting contraction in GDP to justify a third round of quantitative easing – further harming the GDP.

Unfortunately, the viscous cycle of stagflation will grow more acute with each iteration of the Fed’s love affair with counterfeiting. Countries that make the mistake of continuing to peg their currencies to the US dollar will suffer more inflation and more destabilization. Since it will be hardest for the US to ditch the dollar, our hopes are dimmer.

"

 - http://blogs.forbes.com/michaelpento/2011/02/24/arab-autocracies-and-us-...

Fri, 02/25/2011 - 07:35 | Link to Comment BoeingSpaceliner797
BoeingSpaceliner797's picture

It's also possible that Bernanke is acutely aware of each effect that each of his causes has and that, in fact, the effects/results that we are seeing are exactly and precisely the outcomes that he and his bosses desire. 

Fri, 02/25/2011 - 08:15 | Link to Comment Oh regional Indian
Oh regional Indian's picture

You've clearly passed the destructive testign phase Boeing Boeing.

Of course this is all according to plan. You don't prepare for generations and lose it iin the end game. This, to me, feels like one of maybe .02% of people trying (for the most part) to walk against a stampeding herd.

I like one of the poster's handles here, herdredirection.

ORI

http://aadivaahan.wordpress.com/2011/02/16/truth-about-america-truth-about-us/

 

Fri, 02/25/2011 - 09:00 | Link to Comment John Wilmot
John Wilmot's picture

Spot on...and this unbreakable cycle will result in the premature death of the dollar reserve standard

Fri, 02/25/2011 - 05:22 | Link to Comment StychoKiller
StychoKiller's picture

It's the fundamentals, of course, that will determine how high the price ultimately goes. Show me a healthy dollar, show me no threat of inflation, show me a responsible government that stops printing money... Show me a repentant Iran and North Korea...Show me that the sovereign debt issues in Europe are resolved... Show me positive real interest rates... Show me that unemployment is plummeting, that bank closures have stopped, that real estate is recovering...

 

In short, given the amount of insanity presently in the system, who can be so ignorant that they would deny those nice young men in their clean white coats are due for a pickup?

Fri, 02/25/2011 - 07:12 | Link to Comment BoeingSpaceliner797
BoeingSpaceliner797's picture

We have nothing to lose but our illusions.  RNR apparently has more than to lose than others.

Fri, 02/25/2011 - 07:50 | Link to Comment EvlTheCat
EvlTheCat's picture

Reading RNR is like squandering your last dollar to eyeball a perverted peep show.  Unfortunately, after you have paid and poked your eye through the hole in the wall you get a Freudian nightmare of all the things that terrify him and keep him from sleeping at night.  You always attack the things you are scared of most especially when you are an extremist.

Pleasant dreams RNR

Fri, 02/25/2011 - 14:18 | Link to Comment vas deferens
vas deferens's picture

Perfectly stated!!!!

"looking at M2 Bernanke has well and truly laid the inflation egg, all that matters now is when does it hatch?"

"Its all about money velocity now."

Once money velocity, how fast money changes hands, increases inflation will reach new highs and very hard to stop without raising interest rates to 20%. (see Paul Volcker in the 1980s)

Raising rates is the healthy thing to do but very painful slowing all lending/spending.

The FED has shown they will not raise rates to help the economy. The FED is a one trick pony, stimulate, stimulate, and when that fails we just did not stimulate enough.  This will most likely end with hyper-inflation.

 

Fri, 02/25/2011 - 01:29 | Link to Comment Delmar
Delmar's picture

http://www.theonion.com/articles/us-economy-grinds-to-halt-as-nation-rea...

Calling it "basically no more than five rectangular strips of paper," Fed chairman Ben Bernanke illustrates how much "$200" is actually worth.

Fri, 02/25/2011 - 01:45 | Link to Comment Alienated Serf
Alienated Serf's picture

ahhaha!!!

 only the jester dare utter thetruth

Fri, 02/25/2011 - 05:24 | Link to Comment StychoKiller
StychoKiller's picture

And now, for my next trick:  Observe how adding 50 zeroes give me enough moola to buy the entire World!

[That's amazing, just how do he do it?] :>D

Fri, 02/25/2011 - 01:35 | Link to Comment chopper read
chopper read's picture

that kid is great.  thanks for posting. 

Fri, 02/25/2011 - 07:16 | Link to Comment LostPosterity
LostPosterity's picture

LOL!   I finally found the kid from page 6 in this book.  He sure hasn't aged much since 1894.

http://www.archive.org/details/coinsfinancialsc00harvrich

 

 

Fri, 02/25/2011 - 10:10 | Link to Comment Slewburger
Thu, 02/24/2011 - 23:00 | Link to Comment Dr. Dre
Dr. Dre's picture

genius jesse

Thu, 02/24/2011 - 22:01 | Link to Comment John Law Lives
John Law Lives's picture

Feds: Food prices to surge in 2011.

http://investmentwatchblog.com/feds-food-prices-set-to-jump-3-5/

The Ben Bernank won't be able to spin this.

Thu, 02/24/2011 - 23:22 | Link to Comment Imminent Crucible
Imminent Crucible's picture

A closely related article:

Cheating Investors as Official Government Policy

http://danielamerman.com/articles/2011/Cheating.htm

Amerman really, really gets it.

Thu, 02/24/2011 - 23:52 | Link to Comment Clockwork Orange
Clockwork Orange's picture

No worries, that is headline inflation.  It is the core inflation that is extra important.  Food is only an ancillary component of the big picture.  /sarcasm off

Thu, 02/24/2011 - 22:03 | Link to Comment Missing_Link
Missing_Link's picture

FULLY erect.

Thu, 02/24/2011 - 22:47 | Link to Comment baby_BLYTHE
baby_BLYTHE's picture

Especially the 10-year for Gold.

Nice long, hard and stiff uptrend.

 

Thu, 02/24/2011 - 22:03 | Link to Comment grandcanonical
grandcanonical's picture

It's the fifth largest increase.  So what was the result of the four increases that were larger?

Thu, 02/24/2011 - 22:10 | Link to Comment Cleanclog
Cleanclog's picture

Great question.  Does anyone have the answer?  Thanks in advance.

Fri, 02/25/2011 - 05:26 | Link to Comment StychoKiller
StychoKiller's picture

Add a comma and presto!:

"It's the fifth, largest increase."

Are we clear, here?

Thu, 02/24/2011 - 22:05 | Link to Comment StateofFraud
StateofFraud's picture

The longer term chart really gives this some perspective:

http://research.stlouisfed.org/fred2/data/BASE_Max_630_378.png

Thu, 02/24/2011 - 22:22 | Link to Comment SofaPapa
SofaPapa's picture

This longer-term chart is the perfect symbol.  It screams: "we've completely lost control."  This roller-coaster was really well built for a number of years, and so the cars have stayed on the rails amazingly well.  They're determined to drive full speed until we come off, however.  Interesting times.

Thu, 02/24/2011 - 22:50 | Link to Comment topcallingtroll
topcallingtroll's picture

Good analogy.

I think there is a small.chance that we somehow make it back to the station bruised and battered.

Thu, 02/24/2011 - 23:54 | Link to Comment pods
pods's picture

I would liken it more to the elevator at the end of Willy Wonka.

pods

Fri, 02/25/2011 - 00:49 | Link to Comment francis_the_won...
francis_the_wonder_hamster's picture

Better analogy.  I can easily imagine the Fed oompa loompas printing money.

Thu, 02/24/2011 - 23:15 | Link to Comment scatterbrains
scatterbrains's picture

I thought that was a long term gold chart for a minute because the price and time scale track very closely to what gold has done during this same time frame.. could it mean $2400 gold soon ?

 

 

Thu, 02/24/2011 - 22:05 | Link to Comment plocequ1
plocequ1's picture

DXY: Hanging on to 77 by a thread

Fri, 02/25/2011 - 00:47 | Link to Comment Caveman93
Caveman93's picture

Now it's 76.99..we're in deep doo-doo!

Thu, 02/24/2011 - 22:13 | Link to Comment 99er
99er's picture

Some Graffiti

M2   http://www.screencast.com/t/YiC69y5Hppe

 

Thu, 02/24/2011 - 22:17 | Link to Comment SilverBaron
SilverBaron's picture

I'm tired of this adjusted bullshit!  If you are going to give adjusted numbers at least give the real ones too. 

Thu, 02/24/2011 - 22:30 | Link to Comment ATG
ATG's picture

An 'orse of a different colour

http://bit.ly/eKQlIJ

Fri, 02/25/2011 - 01:15 | Link to Comment GoinFawr
GoinFawr's picture

So that's the chart Bene will use to justify QEforever.

Thu, 02/24/2011 - 23:57 | Link to Comment Dr. Porkchop
Dr. Porkchop's picture

Don't talk so loose. You'll be sent off for re-education with that kind of talk.

Fri, 02/25/2011 - 00:24 | Link to Comment RockyRacoon
RockyRacoon's picture

You gotta be educated afore you can be RE-educated -- doncha know?

Fri, 02/25/2011 - 02:44 | Link to Comment Antipodeus
Antipodeus's picture

++++

Fri, 02/25/2011 - 14:32 | Link to Comment SilverBaron
SilverBaron's picture

I gradiated from the 6th grade!

Thu, 02/24/2011 - 22:20 | Link to Comment Misean
Misean's picture

So, does this mean I gets more monies?

Thu, 02/24/2011 - 22:21 | Link to Comment Quaderratic Probing
Quaderratic Probing's picture

I love this market Everything goes up

Thu, 02/24/2011 - 22:22 | Link to Comment Rusty Shorts
Rusty Shorts's picture

ECONOMIC THREAT LEVEL
Harmonious. :)
Content. ;)
Indifferent. :-
Discontent. :/
Almost fucked. :( --------- YOU ARE HERE --------
Totally fucked. :0

 

 

 

  (yes, i stole it)

Thu, 02/24/2011 - 22:28 | Link to Comment Bastiat
Bastiat's picture

Well done, Robin Hood!

Fri, 02/25/2011 - 00:08 | Link to Comment serotonindumptruck
serotonindumptruck's picture

What about FUBAR?

Or does that fall into the "Totally flocked" category?

Fri, 02/25/2011 - 01:31 | Link to Comment Dead-eye Odom
Dead-eye Odom's picture

Every cloud has a silver lining. Silver, whodathunk? Oh, yeah.....everybody.

Fri, 02/25/2011 - 02:45 | Link to Comment Antipodeus
Antipodeus's picture

++++ anyway.  Thanks for the chuckle.

Thu, 02/24/2011 - 22:28 | Link to Comment Sutton
Sutton's picture

M3 reporing was discontinued years ago.

Why?

Because it is too expensive.

The Fed can't afford it.

 

Fri, 02/25/2011 - 00:44 | Link to Comment Assetman
Assetman's picture

Mmmm... insidious... funny... and wrapped in a slice of back bacon.

Doesn't get much better.

Fri, 02/25/2011 - 04:33 | Link to Comment asdasmos
asdasmos's picture

The Fed’s reaction will be as predictable as ever.

We already know that Chairman Bernanke exculpates the Fed for any blame in creating inflation either domestically or abroad. In fact, he refuses to even consider rising food and energy prices in his definition of inflation. Americans could be paying $50/pound for ground beef, but as long as their houses are still losing value, Bernanke doesn’t see an inflation problem. Meanwhile, they’re eating squirrel for protein while making payments on a mortgage twice as expensive as the house.

The truth is that Bernanke doesn’t know what causes inflation, so he can’t be expected to spot it, much less do something about it. Using the Fed’s own history as a guide, Bernanke will view rising commodity prices as a threat to GDP growth and a sign of pending deflation. That’s because the Fed is caught up in a ‘Phillips curve’ philosophy that only equates economic growth and prosperity with inflation. In short, Bernanke believes that slow growth and rising unemployment rates equate to deflation, despite plentiful contrary examples in history.

Since he believes rising commodity prices are deflationary and have nothing to do with his own loose monetary policy, the Fed is likely to expand its balance sheet to a greater degree. The fact that the Fed’s massive money printing effort is the progenitor of global food riots completely escapes him. As more damage is done, the Fed will use the resulting contraction in GDP to justify a third round of quantitative easing – further harming the GDP.

Unfortunately, the viscous cycle of stagflation will grow more acute with each iteration of the Fed’s love affair with counterfeiting. Countries that make the mistake of continuing to peg their currencies to the US dollar will suffer more inflation and more destabilization. Since it will be hardest for the US to ditch the dollar, our hopes are dimmer.

Thu, 02/24/2011 - 22:27 | Link to Comment SimpleSimon
SimpleSimon's picture

This must relate to the news that a large shipment of Viagra was delivered to the Fed at the end of December....

Thu, 02/24/2011 - 22:29 | Link to Comment TheGoodDoctor
TheGoodDoctor's picture

So, does this imply inflation I take it? How about hyperinflation?

Thu, 02/24/2011 - 22:32 | Link to Comment ATG
Thu, 02/24/2011 - 23:55 | Link to Comment GoinFawr
GoinFawr's picture

Which is the chart being employed to practically guarantee QE(insert natural number here)?

Thu, 02/24/2011 - 22:30 | Link to Comment ATG
ATG's picture

.

Thu, 02/24/2011 - 22:30 | Link to Comment gwar5
gwar5's picture

What's M3 doing these days? Looks like M2 is doing what Benocide wanted.

Thu, 02/24/2011 - 22:33 | Link to Comment Sizzurp
Sizzurp's picture

That chart looks like theft in progress.  Someone call the police.

Thu, 02/24/2011 - 22:41 | Link to Comment saulysw
saulysw's picture

Full monetary-policy retard.

Thu, 02/24/2011 - 23:40 | Link to Comment philgramm
philgramm's picture

can't believe the Bernank went full retard

Thu, 02/24/2011 - 22:41 | Link to Comment Reese Bobby
Thu, 02/24/2011 - 22:49 | Link to Comment saulysw
saulysw's picture

I saw it and laughed. I think it got the attention it deserved...ie none.

Thu, 02/24/2011 - 22:56 | Link to Comment chump666
chump666's picture

China is going to use no vaseline on Geithner

Fri, 02/25/2011 - 03:04 | Link to Comment Antipodeus
Fri, 02/25/2011 - 05:41 | Link to Comment StychoKiller
StychoKiller's picture

Thanks, almost choked on a caramel candy, from laughing so hard!

Thu, 02/24/2011 - 23:04 | Link to Comment macholatte
macholatte's picture

Geithner has emerged as President Barack Obama’s most powerful economic policy maker.

 

Ahem. Shouldn't that be Soros has emerged as President Barack Obama’s most powerful economic policy maker?

Looks like Timmy is getting set up to take the fall.

 

I was a scapegoat. The media had to put responsibility on somebody, and I was chosen. They felt free to say that because someone was thin they were anorexic, which is ridiculous.
Kate Moss
Thu, 02/24/2011 - 23:50 | Link to Comment dexter_morgan
dexter_morgan's picture

+

Fri, 02/25/2011 - 01:52 | Link to Comment Cheyenne
Cheyenne's picture

"'The core of the American financial system is in a much stronger position than it was before the crisis,' Geithner said."

Right. The core obviously excludes Luddite metrics like mark-to-market accounting rules like FASB-157.

Thu, 02/24/2011 - 22:51 | Link to Comment baby_BLYTHE
baby_BLYTHE's picture

A 5th of Jack Daniels a day, keeps the doctor away!

:)

yummy in my tummy (Good thing I am young) also a good thing I have a job in this economy.

Thu, 02/24/2011 - 22:47 | Link to Comment chump666
chump666's picture

disgusting.

bernanke has gone insane...Obama has a govt shutdown looming and the Fed madman pumbs out money money.

Failed UST auctions next...

Thu, 02/24/2011 - 22:50 | Link to Comment baby_BLYTHE
baby_BLYTHE's picture

So after all the pumping, we surrender to a Deflationary nightmare?

I don't think that is the FED's plan.

I agree they might allow a failed auction just to use it as a means to implement austerity.

Ya know, playing God with the lives of our citizens and all that?

Thu, 02/24/2011 - 23:00 | Link to Comment Greenhead
Greenhead's picture

Which deflationary nightmare? Do you mean the finding of real value?  The end of extend and pretend?  Who's nightmare?  It seems that there is a lot of effort in continuing the make believe that the banks are fine, that real estate values truly reflect what the properties are worth and that the dollar is sound?  What exactly are you referring to when you say nightmare?

Thu, 02/24/2011 - 23:06 | Link to Comment chump666
chump666's picture

the economy and global economy needs a re-set, gonna happen anyway.  A proper repricing, deflation will allow that.  what the FED, Obama and EU are playing at...well you are seeing that now in the middle east.  inflation overdrive  = riots/turmoil.

For the failed auctions, no it will be China that will force the US into Austerity

Fri, 02/25/2011 - 00:27 | Link to Comment RockyRacoon
RockyRacoon's picture

I reckon you could be right.  If there were no such thing as deflation there wouldn't be a word for it.

Thu, 02/24/2011 - 22:48 | Link to Comment hambone
hambone's picture

More.  Lots more.

Thu, 02/24/2011 - 22:54 | Link to Comment gwar5
Thu, 02/24/2011 - 23:06 | Link to Comment pacu44
pacu44's picture

Sue Herrera, CNBC Host, says "this should be good for the markets."

 

Joe Kernan, CNBC Hair piece, says "Bet Rick Sentelli gonna kiss Steve Liesman now."

Steve Liesman, CNBC & FEDERAL RESERVE whore, "It shows how well the Fed can run a printing press :-}   "

Thu, 02/24/2011 - 23:06 | Link to Comment unclebigs
unclebigs's picture

Long Pussyjuice, Short Silver

Thu, 02/24/2011 - 23:16 | Link to Comment tmosley
tmosley's picture

Hard to go long pussyjuice.  As soon as you commit to the trade, it dries up.

Thu, 02/24/2011 - 23:26 | Link to Comment unclebigs
unclebigs's picture

Try rubbing the G-spot.  Stays nice and juicy.

Thu, 02/24/2011 - 23:38 | Link to Comment baby_BLYTHE
baby_BLYTHE's picture

Don't think, just "DO". (while respecting common discency).

Don't defy it. Don't be violent with it. Just give it... nice and slow

http://www.youtube.com/watch?v=zKYeoKgoGko

 

Fri, 02/25/2011 - 03:43 | Link to Comment Red Neck Repugnicant
Red Neck Repugnicant's picture

As soon as you commit to the trade, it dries up.

It doesn't surprise me in the slightest that you're incapable of arousing a woman.

Here's tmosely's most recent Craigslist posting in Casual Encounters:

First and foremost, I'm an extremely pompous, paranoid and goofy libertarian, who is obsessed with all conspiracies revolving around central banking determinism.  There is no doubt in my mind that I will be the next oligarch of America and I have a penchant for openly admitting this to strangers on internet forums.  I'm not quite sure which will make me wealthier: my stamp collection, my coin collection or the fact that I have the cure for cancer and HIV.  One thing is certain though, I'm an garrulous windbag of self-righteous lunacy and all non-libertarians who meet me seem to think I'm a laughable douche bag with delusions of grandeur.   

I'm simply looking for a woman to endure 15 minutes of coffee and conversation without having to rub smelling salts around her nostrils to stay awake.

Additionally, I wouldn't mind meeting a cynical, overweight beer drinking buddy who would like to have drinks at my favorite neighborhood bar, "Cheers".  

If interested please email me:  TheNextOligarch@windbag.com

Fri, 02/25/2011 - 04:36 | Link to Comment asdasmos
asdasmos's picture

"

The Fed's reaction will be as predictable as ever.  

We already know that Chairman Bernanke exculpates the Fed for any blame in creating inflation either domestically or abroad. In fact, he refuses to even consider rising food and energy prices in his definition of inflation. Americans could be paying $50/pound for ground beef, but as long as their houses are still losing value, Bernanke doesn't see an inflation problem. Meanwhile, they're eating squirrel for protein while making payments on a mortgage twice as expensive as the house.

 

The truth is that Bernanke doesn't know what causes inflation, so he can't be expected to spot it, much less do something about it. Using the Fed's own history as a guide, Bernanke will view rising commodity prices as a threat to GDP growth and a sign of pending deflation. That's because the Fed is caught up in a 'Phillips curve' philosophy that only equates economic growth and prosperity with inflation. In short, Bernanke believes that slow growth and rising unemployment rates equate to deflation, despite plentiful contrary examples in history.

 

Since he believes rising commodity prices are deflationary and have nothing to do with his own loose monetary policy, the Fed is likely to expand its balance sheet to a greater degree. The fact that the Fed's massive money printing effort is the progenitor of global food riots completely escapes him. As more damage is done, the Fed will use the resulting contraction in GDP to justify a third round of quantitative easing - further harming the GDP.

 

Unfortunately, the vicious cycle of stagflation will grow more acute with each iteration of the Fed's love affair with counterfeiting. Countries that make the mistake of continuing to peg their currencies to the US dollar will suffer more inflation and more destabilization. Since it will be hardest for the US to ditch the dollar, our hopes are dimmer.

"

http://blogs.forbes.com/michaelpento/2011/02/24/arab-autocracies-and-us-...

Fri, 02/25/2011 - 09:28 | Link to Comment tmosley
tmosley's picture

It's a joke, you jackass.  Apparently you've never heard of the meme that sex dries up after marriage.

But I guess you wouldn't know anything about marriage, as the closest you get to that is S&M Mondays down at the local biker bar where you are EVERYONE'S wife.

Fri, 02/25/2011 - 01:25 | Link to Comment chump666
chump666's picture

oh man that is fucking classic... bet your girlfriend is smiling....

Thu, 02/24/2011 - 23:15 | Link to Comment Richard Head
Richard Head's picture

Aren't these reserves held at the Fed earning 0.25% risk free?  What is going to cause them to leak into the economy?

Thu, 02/24/2011 - 23:28 | Link to Comment Milton Waddams
Milton Waddams's picture

Right, if you discount MZM by excess bank reserves held at the Fed it illustrates what accounts for most of MZM's increase. With that said, the last I checked banks, give or take a rogue nation here or there, can to lend to anyone. The American consumer, ex-luxury, in general has been successfully drained; the movement now is to develop a replacement consumer in emerging markets.

Thu, 02/24/2011 - 23:27 | Link to Comment JW n FL
JW n FL's picture

So...

 

all this new money was printed out of thin air? yes!

 

all this new money that has been added does nothing but de-value the money (paper) that already exists? yes!

 

all this new money drives inflation in a synthetic way? yes!

 

all this new Money "We the People" owe the interest payments for? yes!

 

and once again... we give this money away to the Banks / Wall Street... and then we pay the interest on the monies... becuase they fucked up the stolen money from us already????

 

Fucking Fantastic!

Thu, 02/24/2011 - 23:42 | Link to Comment JW n FL
JW n FL's picture

Losses equal BONUS MONIES BITCHEZ!!!!!

Fri, 02/25/2011 - 02:32 | Link to Comment Harmonious_Diss...
Harmonious_Dissonance's picture

Mmmmkay?

Fri, 02/25/2011 - 02:18 | Link to Comment ft65
ft65's picture

TrInIty / JW n FL, you state the rather obvious. Those on this forum hardly need this type of analysis. GuLP! Perhaps if peope had been loyal to home industries, rather than buying cheap rubbish products from China or flipping unaffordable houses, the government (YOU WORK FOR) would not have to print money. LOPping off military projects such as HB Gary / MacDill sock puppet software would be a good start! 

Fri, 02/25/2011 - 11:29 | Link to Comment Things that go bump
Things that go bump's picture

Nothing gets cut from defense. They will cut your granny's social security first.  

Fri, 02/25/2011 - 11:35 | Link to Comment Rodent Freikorps
Rodent Freikorps's picture

Defense protects.

Granny is a parasite living in a 2000sq ft. house.

Barracks living is good enough for old parasites who failed to plan.

Fri, 02/25/2011 - 13:32 | Link to Comment Boxed Merlot
Boxed Merlot's picture

...the government (YOU WORK FOR) would not have to print money...

I'm not sure which government you are referring to, but here in the US we let our free enterprise constituent do the printing and distributing for us. Perhaps you've heard of it, they're known the world over as the federal reserve. We affectionately know their distributors as the TBTFs.

Last time we had a president attempt to circumvent their little arrangement and actually print US notes as legal tender, he took a spill in Dallas, TX.

By the way, what's with you and JW, woman scorned?

Thu, 02/24/2011 - 23:28 | Link to Comment the grateful un...
the grateful unemployed's picture

the BOJ parked money in moneymarket funds read history read history

Thu, 02/24/2011 - 23:30 | Link to Comment lsbumblebee
lsbumblebee's picture

Looks like Chairstain Ben's money tree is sprouting.

Thu, 02/24/2011 - 23:33 | Link to Comment Jerry Maguire
Jerry Maguire's picture

Look, I'll agree that the Fed does control M2; but they've been at it a while, and the reserves just pile up at the banks.  I went through all this a couple of months ago with Robert Wenzel over on his blog, and mine, and got nowhere.

http://strikelawyer.wordpress.com/2010/12/30/inflation-deflation-debt/

Has the Bernanke lost control?  Well, he doesn't have absolute control.  He can pump money into the banks but that doesn't mean it goes anywhere after that. 

It is essential to understand this about the monetary system:  no new money gets created unless it is owed back into the system.  So there has to be a loan.  And that requires a borrower and a lender.  The Bernanke can put the money there, and the lenders are always there.  But the one thing he can't control is whether there is a borrower.

When we had the subprime crisis, what that meant was that there was a shortage of qualified borrowers - in other words, that thing that the Bernanke could not control was signaling that people on the whole were too impoverished to borrow anymore. 

The borrower of last resort is the USG.  And that's why the deficits exploded.  But now the USG has to service the debt it has incurred and people are rebelling.

I don't think M2 really means all that much. 

Thu, 02/24/2011 - 23:37 | Link to Comment lsbumblebee
lsbumblebee's picture

Meaning hyperinflation is impossible?

Fri, 02/25/2011 - 00:00 | Link to Comment Mediocritas
Mediocritas's picture

Hyperinflation will *only* happen if the world ditches the USD as the trading & reserve currency. All those eurodollars flying home combines with a good dose of speculative short selling leads to hyperinflation.

But what do you think the chances of that happening (in an uncontrolled manner) are? The US still has primary control of the IMF.

Fri, 02/25/2011 - 00:23 | Link to Comment GoinFawr
GoinFawr's picture

If a tiny country like Iceland isn't afraid of the IMF, why should anyone else be?

Eg. Do you really think China will be bullied by the IMF? Russia?

Fri, 02/25/2011 - 00:11 | Link to Comment lsbumblebee
lsbumblebee's picture

Good thing the US controls the IMF.

http://money.cnn.com/2011/02/10/markets/dollar/index.htm

Fri, 02/25/2011 - 01:17 | Link to Comment GoinFawr
GoinFawr's picture

Oh Snap!

Fri, 02/25/2011 - 03:45 | Link to Comment Mediocritas
Mediocritas's picture

What's your point?

Fri, 02/25/2011 - 07:38 | Link to Comment Alienated Serf
Alienated Serf's picture

bancor. bitchez.

Fri, 02/25/2011 - 03:50 | Link to Comment Antipodeus
Antipodeus's picture

Until the rest of the world grows tired of its knee-jerk austerity prescriptions, & tells it to "F@ck off!"?  Until it decides to refuse to countenance the automatic appointment of an American to head it?

Thu, 02/24/2011 - 23:45 | Link to Comment Milton Waddams
Milton Waddams's picture

It wasn't for a lack of trying, what with cash for clunkers, first time home buyers credit...

Yet bank credit is growing at annual rates previous consistent with business cycle troughs.

Welcome to the recovery.

Fri, 02/25/2011 - 00:50 | Link to Comment Oracle of Kypseli
Oracle of Kypseli's picture

The first time homebuyers have already lost that credit as home prices have gone down enough to wipe off 8K of their equity and still falling. That's what's wrong with the American dream, it's oversold. 

Fri, 02/25/2011 - 04:00 | Link to Comment Antipodeus
Antipodeus's picture

That's what happens when people are relentlessly persuaded to stop regarding 'houses' as 'homes', and regard them instead as 'investment vehicles'. 2nd homes are often/mostly in that category.  Homes should NEVER be.

 

 

 

Fri, 02/25/2011 - 07:54 | Link to Comment Withdrawn Sanction
Withdrawn Sanction's picture

Yet bank credit is growing at annual rates previous consistent with business cycle troughs.

Citations and data sources, please?

According to the Fed's Z.1 release, credit IS growing moderately (4%).  However, when you look at the sub-components, the only sector really growing rapidly is government debt/credit (state & local, fed).  Also, business borrowing has grown modestly in the latest quarter, but its performance has been very uneven, fluctuating from positive to negative over the past several quarters.  Household borrowing remains in negative territory.

 Given this composition, it is foolhardy to suppose this "recovery" is self-sustaining.  Rather it is on life-support that, once withdrawn, sends the patient right back to the ICU.

 Good luck w/your "recovery," Dr Pangloss.

Thu, 02/24/2011 - 23:51 | Link to Comment GoinFawr
GoinFawr's picture

What if every single other CB in the world in printing fiat to keep up with Bene? Or does the US print in a vacuum?

Fri, 02/25/2011 - 00:52 | Link to Comment Oracle of Kypseli
Oracle of Kypseli's picture

They all do indeed. Hence, skyrocketing commodities. If Silver was not manipulated, it would be $75/oz 

Thu, 02/24/2011 - 23:58 | Link to Comment Mediocritas
Mediocritas's picture

double

Fri, 02/25/2011 - 00:04 | Link to Comment GoinFawr
GoinFawr's picture

What happens if the only place left on earth that the US can successfully force everyone to use the USD is the US?

<damn, sneaky. You are a contrarian, most would label the 2nd post 'duplicate'- so now you know where this comment was meant to be>

Fri, 02/25/2011 - 00:07 | Link to Comment Mediocritas
Mediocritas's picture

Not intentional, but HAH! See message above regarding hyperinflation.

Long term, yes, the USD will lose its global status. But plenty of time to manage it and smooth the transition to a new currency. For example, the SDR has already seen a reweighting of the USD.

It will be controlled.

Fri, 02/25/2011 - 00:16 | Link to Comment GoinFawr
GoinFawr's picture

SDR= Same shit different story.

Try forcing that on China and Russia. They're not about to allow themselves to be ruled by the IMF, sorry. They might play along for awhile, but guess which element(s) they will demand are in the equation... y'know the ones they are encouraging billions of people to own; billions of people who will be entirely pissed if the state recognition of the value of those elements drops below a certain threshold.

Fri, 02/25/2011 - 00:16 | Link to Comment JW n FL
JW n FL's picture

New item in your series of interest:

SDR Valuation as of Feb 24, 2011 Disclaimer: The International Monetary Fund makes no warranties, express or implied, regarding these tables or the performance of this site. The Fund shall not be liable for any losses or damages incurred in connection with this site.

http://www.imf.org/external/np/fin/data/rms_sdrv.aspx?Month=02&Day=24&Year=2011&submit=Submit

Fri, 02/25/2011 - 00:57 | Link to Comment Oracle of Kypseli
Oracle of Kypseli's picture

If they don't include a % of Gold and Silver in the equation, I am not buying any SDR's.

Fri, 02/25/2011 - 01:56 | Link to Comment JW n FL
JW n FL's picture

what about tungsten? I only ask becuase it is up 70% and it would seem that gold bars have a good amount insulated of course by gold. 

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