This page has been archived and commenting is disabled.

As Adjusted Monetary Base Rises By Half A Trillion In 2011, Treasury Runs Out Of Debt Ceiling Delay Measures

Tyler Durden's picture





 

Something very notable happened today receiving exactly zero recognition by the mainstream press: the process of winding down the Supplementary Financing Program ended, with either zero (assuming the entire $25 billion in 56 Day CMB matured without rolling) or $5 billion (as per the Treasury's disclosure), remaining under the SFP. This means that the entire $200 billion buffer that had previously afforded the Treasury breathing room with the looming debt ceiling, is now gone, and next steps include such drastic measures as a partial or complete government shutdown, as no incremental funding will be available to fund the daily deficit. As a reminder, as of today the Treasury had a total of $12.24 trillion in debt, just $70 billion below the ceiling, and $14.172 of debt subject to the limit. Which is not good because as per today's refunding announcement there is $99 billion in 2, 5 and & 7 year debt coming down the line next week. Which means that while the formal debt ceiling will not be breached, the total amount of debt including the fluff not counted, will surpass $12.4 trillion by next Friday. In the meantime, the SFP unwind continues to have a major impact on the adjusted monetary base. As we have discussed in the past, excess reserves continue to go parabolic, purely as a function of the SFP unwind and ongoing QE2, which in turn is impacting the adjusted monetary base, which is now half a trillion greater year to date. As we predicted previously, excess reserves will hit $1.7 trillion by the summer. These rose by $72 billion in the past week to approximately $1.4 trillion, which means that by the time QE2 is over, the Adjusted Monetary Base will hit $2.7 trillion, a $750 billion increase in 6 months. And if QE3 gets the green light, all bets are off. And once this surging monetary base is converted from excess reserves to currency in circulation, that is the moment when Weimar comes a-knockin'.

The AMB chart that speaks volumes (link).

 


- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Thu, 03/24/2011 - 21:26 | Link to Comment SheepDog-One
SheepDog-One's picture

The chart says it all, endgame upon us.

Thu, 03/24/2011 - 21:35 | Link to Comment penisouraus erecti
penisouraus erecti's picture

Damn - you had to say endgame and make post Mustaine's song again.....

http://www.youtube.com/watch?v=ezjdu0yKhss

Thu, 03/24/2011 - 21:52 | Link to Comment takinthehighway
takinthehighway's picture

Or this...time to break away... 

http://www.youtube.com/watch?v=A5o0skTQWIs

Thu, 03/24/2011 - 21:53 | Link to Comment penisouraus erecti
Thu, 03/24/2011 - 21:39 | Link to Comment chump666
chump666's picture

Yeah an endgame trade is there...just trying to time it.  Could be very close...

Thu, 03/24/2011 - 22:11 | Link to Comment RECISION
RECISION's picture

Nahh... just pull a couple more rabbits out of the hat... and it's all good.

Party on Dudes.

Thu, 03/24/2011 - 23:45 | Link to Comment rocker
rocker's picture

Doesn't GDP come out at 8:30 tomorrow. Will the market find a new reason to rally on the news ???  He He He Haaaaa.

Thu, 03/24/2011 - 21:47 | Link to Comment I think I need ...
I think I need to buy a gun's picture

all those extra dollars are going to go into gold....I think thats the Bernaks plan

Thu, 03/24/2011 - 22:31 | Link to Comment Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Bernanke is smart, because he is a doctor.

Fri, 03/25/2011 - 01:08 | Link to Comment Dave
Dave's picture

You changed your avatar. Is that a drop of blood?

Fri, 03/25/2011 - 02:37 | Link to Comment John_Coltrane
John_Coltrane's picture

But not a "real" one like Dr. Paul or his son who will make sure the debt limit stays where it is via the almighty filabuster.

Fri, 03/25/2011 - 06:55 | Link to Comment NoClueSneaker
NoClueSneaker's picture

+1

... another coffee spill .... addy of EPA ?

Thu, 03/24/2011 - 22:40 | Link to Comment Sam Clemons
Sam Clemons's picture

I've seen that if (when) gold hits $5000, most of the existing money supply will be "backed" by the gold in Fort Knox. Weird how that works out...

Everyone thinks the bankers all hate gold, but governments and central banks still have more than everyone else. 

 

http://thelastcanary.blogspot.com/

Fri, 03/25/2011 - 01:15 | Link to Comment TruthInSunshine
TruthInSunshine's picture

I've read 50k+ per ounce puts it at equilibrium.

Fri, 03/25/2011 - 05:02 | Link to Comment DavidC
DavidC's picture

What gold in Fort Knox?

DavidC

Thu, 03/24/2011 - 22:43 | Link to Comment spankthebernank
spankthebernank's picture

That chart is breathtaking!!

Thu, 03/24/2011 - 23:16 | Link to Comment dark pools of soros
dark pools of soros's picture

more like wealthtaking!!

Fri, 03/25/2011 - 00:55 | Link to Comment Mark McGoldrick
Mark McGoldrick's picture

That's the most clever post of the day. 

 

Thu, 03/24/2011 - 22:53 | Link to Comment TruthInSunshine
TruthInSunshine's picture

 

Equity markets are going to crash in short order.

That 'money' isn't real until it's realized, and there's no chart showing offsetting liabilities that are yet to be realized.

A good chunk of this money is already claimed by creditors, and will never make it to circulation.

There will be a MASSIVE amount of redemptions shown around this time, when you all look back, from equity pools.

Get on the right side of this trade.

It's all a fucking house of cards, just like in 1999 and 2007. No difference.

I know this won't be popular or that many are going to agree with me, but the crash will take almost all assets down with them.

The liquidity crisis that is unfolding now is the biggest in the history of mankind.

Thu, 03/24/2011 - 22:54 | Link to Comment cocoablini
cocoablini's picture

Its all an accounting scheme- so if the FED owns a oile of equities, why would the stock market crash unless the ponzi banks dump shares to run for cash- which in this case would be worthless- as would treasuries

Thu, 03/24/2011 - 23:15 | Link to Comment TruthInSunshine
TruthInSunshine's picture

The Fed doesn't own a lot of equities. They probably own none.

The Fed's conflation of the equity markets was done vis a vis a faustian pact with Primary Dealers and other institutions.

Thu, 03/24/2011 - 23:15 | Link to Comment Double down
Double down's picture

I tend to agree but it is more of a feeling though.  I do not think this money will make it into circulation in a meaningfull way.  I think cash, physical cash, will command a premium over the electronic version in the near future.  The assault on the dollar's reserve currency status will come from the comedy of abundant electronic liquidity for some and the dearth for those who have to service debts.

Thu, 03/24/2011 - 23:29 | Link to Comment ATG
ATG's picture

Bingo

Thu, 03/24/2011 - 23:48 | Link to Comment TruthInSunshine
TruthInSunshine's picture

Tyler keeps pasting the St. Louis Fed M2 chart, but no one will go further and speak about the fact that a massive chunk of those 'digital dollars' will never make it into circulation, as creditors have already liened or attached to them, or there are offsetting losses in terms of unrealized losses in other asset classes (e.g. real estate; e.g. derivatives) that will offset such shown 'money supply'.

Fri, 03/25/2011 - 01:20 | Link to Comment Terminus C
Terminus C's picture

Sure, but what then do the creditors do with the money they have claimed?  It does not get destroyed.

Fri, 03/25/2011 - 01:49 | Link to Comment TruthInSunshine
TruthInSunshine's picture

A lot of it gets destroyed, as it was marked to some sort of pledge, collateral or contract or security instrument, and unless the payor gets bailed out (which is not going to happen - no way), what will they collect?

Poof. Into the ether.

Thu, 03/24/2011 - 21:28 | Link to Comment Racer
Racer's picture

Debt ceilings? fuck that...

Thu, 03/24/2011 - 21:40 | Link to Comment Boilermaker
Boilermaker's picture

Yep, no shit.

Futures, up like a mother fucker.

Nobody has time for any of this reality shit.  They've a fraudulent market to keep propped up.

Thu, 03/24/2011 - 21:43 | Link to Comment Bay of Pigs
Bay of Pigs's picture

You notice the beatdown and margin hike had a less than 24 hour impact on gold/silver prices? Right back where we started yesterday.

Sinclairs post today was dead on.

http://jsmineset.com/2011/03/24/how-when-but-more-importantly-why/

Thu, 03/24/2011 - 21:56 | Link to Comment JLee2027
JLee2027's picture

All I want to know at this point is when is the fiat system of shitola coming apart so America can start rebuilding.

Thu, 03/24/2011 - 22:35 | Link to Comment Mr Lennon Hendrix
Mr Lennon Hendrix's picture

I could make a solid case that it came apart in 1913.

Thu, 03/24/2011 - 23:18 | Link to Comment dark pools of soros
dark pools of soros's picture

yeah they tear down all the other regulations but that damn debt ceiling gonna stop 'em!!

Thu, 03/24/2011 - 21:32 | Link to Comment Lets_Eat_Ben
Lets_Eat_Ben's picture

shut it down! Shut it all down!

Fri, 03/25/2011 - 00:27 | Link to Comment TBT or not TBT
TBT or not TBT's picture

But Benny could deliver us maximum warp, now.

Thu, 03/24/2011 - 21:36 | Link to Comment reader2010
reader2010's picture

This whole fucking thing will end up in tears and blood, bitchez.

Thu, 03/24/2011 - 21:41 | Link to Comment Boilermaker
Boilermaker's picture

For who?  Oh, those people...ah, fuck them.  They don't count.

Thu, 03/24/2011 - 21:54 | Link to Comment Robot Traders Mom
Robot Traders Mom's picture

Kind of like the VCU/Purdue game last weekend...

Thu, 03/24/2011 - 21:55 | Link to Comment Boilermaker
Boilermaker's picture

No, that was actually worse.  I had a 'level 7' event in my living room.

Thu, 03/24/2011 - 21:59 | Link to Comment Robot Traders Mom
Robot Traders Mom's picture

Yeah sorry dude. Y'all got f'd when Robbie Hummel went down. The suspension didn't help. I'm driving down to San Antonio tomorrow for the VCU game. Richmond is going to knock of KU.

Thu, 03/24/2011 - 22:01 | Link to Comment Boilermaker
Boilermaker's picture

Uhhhh...The spiders beat Purdue in the regular season also.

Fri, 03/25/2011 - 08:51 | Link to Comment malikai
malikai's picture

Ah, sport. The opium of the masses.

Thu, 03/24/2011 - 21:35 | Link to Comment string
Thu, 03/24/2011 - 21:38 | Link to Comment Blano
Blano's picture

I can't keep up with ZH anymore.

Thu, 03/24/2011 - 21:38 | Link to Comment Lets_Eat_Ben
Lets_Eat_Ben's picture

It's making you want to off yourself?

Thu, 03/24/2011 - 23:31 | Link to Comment Blano
Blano's picture

Nah, just too much good reading to keep current on.  By the time I get through one, two more show up.

Thu, 03/24/2011 - 21:37 | Link to Comment Withdrawn Sanction
Withdrawn Sanction's picture

Surely, even an MIT-educated moron can figure out (at least after $2.5 trillion of trying) that it's probably better NOT to PUSH on a string.

(No offense to non-moronic MIT grads)

Thu, 03/24/2011 - 22:18 | Link to Comment disabledvet
disabledvet's picture

maybe it's that little e-trade baby that's "coup'ed Wall Street."

Thu, 03/24/2011 - 21:39 | Link to Comment Shameful
Shameful's picture

Good thing we got a new war on.  That should provide sufficient excuse to pass a new debt ceiling.  After all don't want to leave the boys without cruise missiles and hi tech bombs to drop on people.

Thu, 03/24/2011 - 22:07 | Link to Comment Lets_Eat_Ben
Lets_Eat_Ben's picture

The third war to end all wars

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

Ouch! Truth with cynacism.

Thu, 03/24/2011 - 21:39 | Link to Comment JimboJammer
JimboJammer's picture

In  the  next  3  months  Silver  could  go  way  past  $  78.00  /  oz...  >>  $  124.00 /  oz..

98 %  of  the  Americans  don't  see  this coming....  they  do  know  all  about  Justin Beaver ...  American  Idol  TV...

Time  to  buy  Tuna  Fish  and  Beans....

Thu, 03/24/2011 - 22:10 | Link to Comment Mr. Mandelbrot
Mr. Mandelbrot's picture

I have "Beaver" fever . . .    ;)

Thu, 03/24/2011 - 22:53 | Link to Comment Ahmeexnal
Ahmeexnal's picture

Vagisil.

Thu, 03/24/2011 - 23:23 | Link to Comment ATG
ATG's picture

Or silver could go down...

Thu, 03/24/2011 - 23:25 | Link to Comment ATG
ATG's picture

.

Thu, 03/24/2011 - 21:38 | Link to Comment Humpty Pundit
Humpty Pundit's picture

Just a thought as I am no economist - but what if Benny did some kind of small QE3 for the sake of easing the withdrawal symptoms for the markets and at same time started expressing concerns about inflation to not only gain credibility but to nudge inflation and rising interest rate expectations up a little bit. Wouldn't that encourage people with a job and the money for a down payment to go ahead and buy a house? I wonder how many of those people there are? Do you suppose he knows? I have read today that many corporations are now in a hurry to issue bonds .....

Fri, 03/25/2011 - 02:04 | Link to Comment Breaker
Breaker's picture

"what if Benny did some kind of small QE3 for the sake of easing the withdrawal symptoms for the markets and at same time started expressing concerns about inflation to not only gain credibility but to nudge inflation and rising interest rate expectations up a little bit. Wouldn't that encourage people with a job and the money for a down payment to go ahead and buy a house?"

I have a job and money for a down payment. But the events you describe would encourage me to wait to buy a house because the price of housing will fall rapidly as soon as interest rates rise. There will be dirt cheap houses available. You have to live with the high interest rates for a few years. But you just refinance when rates come down again.

You also comment that corporations are in a hurry to issue bonds. Sure. But why would anyone buy anything but short term bonds now--and that's not what the corporations are trying to issue, I bet. Eventually interest rates will go up a lot. Eventually is probably pretty soon unless we get a QE3 that is as huge as it's predecessors. And then nominal interest rates still go up as inflation takes off. Either eventuality (no QE3 and interest rate increase or QE3 and nominal interest rate increase) will tank the value of low interest rate, long term bonds you buy today.

I suspect this is a kindergarten version of the logic of PIMCO going to cash and short term treasuries.

Fri, 03/25/2011 - 08:22 | Link to Comment Calmyourself
Calmyourself's picture

If Benny nudges up interest rates housing collapses even more. Rising interest rates do not create a rush to housing they create the opposite as abnormally low rates are now the norm. Second, how will we pay the vig on our t-bills if rates go to normal levels we do not have enough cash to pay, Denninger is spot on there..  No, we will continue to print there is n o scenario in which we can quit.  Be glad your fellow citizens are not on this site, they will continue to chew their cud and you can continue to hedge and prepare.  That said they can keep this going much, much longer than you think.

Thu, 03/24/2011 - 21:41 | Link to Comment LostWages
LostWages's picture

Timmy will need his kneepads and goggles as he goes from office to office begging for debt ceiling increase.  Tea party will be tea-bagging ole Timmy.

Thu, 03/24/2011 - 21:49 | Link to Comment Lets_Eat_Ben
Lets_Eat_Ben's picture

and then he will return the favor. DC is an orgy of corruption. I gave up on the new shills when the Patriot Act was extended (de facto)

Thu, 03/24/2011 - 21:42 | Link to Comment gosseyn
gosseyn's picture

Can you say, Katastrophenhauss ?

Thu, 03/24/2011 - 21:53 | Link to Comment avonaltendorf
avonaltendorf's picture

Seems straightforward that real US interest rates (Treasurys, mortgages, blue chip, commercial lines of credit, munis, junk bonds) have to rise.

Fri, 03/25/2011 - 08:25 | Link to Comment Calmyourself
Calmyourself's picture

Really and why is that?  If they don't rise Ben quits buying our debt in a fit of pique..  Perhaps the Caribbean banking interests decide they have had enough?

Thu, 03/24/2011 - 21:49 | Link to Comment sneering nihilist
sneering nihilist's picture

tyler, it would be a nice touch if every time you used the phrase "As we predicted previously," you also provided a link to the previous prediction.  you could maybe even make that specific phrase the link to the prediction. note that i'm not accusing you of not actually predicting the event in question. it would just be a useful feature.

i'd also like to thank you for the excellent coverage of the crisis in japan.

Thu, 03/24/2011 - 21:52 | Link to Comment Tyler Durden
Tyler Durden's picture

Adjusted Monetary Base: Up, Up And Away

The problem with 30+ posts per day is that it becomes impossible to keep an html track of everything said in the past.

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

Tyler, I've been a Drupal/Pressflow developer (and programmer) for years. I could make a module using the content analysis API from Yahoo, some logic and time. With your permission I could begin scraping and start a "re-visualization" experiment for us ZH addicts that would create a more fluid & open perusal of the information in the archives here versus just a "home page only" mentality a lot of us maintain because of the sheer volume of content.

Yes? Anyone agree it would be nice to re-visualize and abstract the content here using the existing taxonomy and content keyword density to create relevant, useful links and features?

Thu, 03/24/2011 - 22:04 | Link to Comment Lets_Eat_Ben
Lets_Eat_Ben's picture

yes pls

Thu, 03/24/2011 - 22:20 | Link to Comment ShankyS
ShankyS's picture

Absolutely!

Thu, 03/24/2011 - 22:20 | Link to Comment disabledvet
disabledvet's picture

no.  i do not.  and i will fight you...

Thu, 03/24/2011 - 22:35 | Link to Comment jimijon
jimijon's picture

I am ready to do an App. And also a ZH Round! I got one coin minted so I know how to do it. And the ZH logo would look so nice wrapped in a silver round.

Notice, I no longer say coin... oops..you didn't hear that.

Fri, 03/25/2011 - 05:52 | Link to Comment whoopsing
whoopsing's picture

 Don't say the "c" word-nice idea though

Thu, 03/24/2011 - 22:55 | Link to Comment Double down
Double down's picture

Me likes that idea

Fri, 03/25/2011 - 00:30 | Link to Comment data_monkey
data_monkey's picture

+1

 

I love it when someone speaks my language and wants to solve a problem. Unlike one guy who interviewed with me, when asked what a taxonomy was he responded with, "Well, it's got the word 'tax' in it...so is it an income-tax anomaly?"

"Ummm...no. Thank you for wasting my time."

Fri, 03/25/2011 - 00:33 | Link to Comment Hook Line and S...
Hook Line and Sphincter's picture

Esta bien.

Thu, 03/24/2011 - 22:01 | Link to Comment Lets_Eat_Ben
Lets_Eat_Ben's picture

Testament to the relentless documentation of the downward spiral. God bless you sir!

Thu, 03/24/2011 - 22:06 | Link to Comment tekhneek
tekhneek's picture

The HTML DOM model stays the same so I could just scrape the entire site using drupal node ID's or I could just get API access via a module I can write.

I've been itching to do this for a few weeks now and would am very serious in starting.

Would appreciate permission before I start scraping from hundreds of IP addresses so I'm not obvious :P

Thu, 03/24/2011 - 22:23 | Link to Comment disabledvet
disabledvet's picture

do not mess with our backward-ass cretenism or you will pay.

Thu, 03/24/2011 - 23:26 | Link to Comment dark pools of soros
dark pools of soros's picture

will i still get my Cramer ads???

Fri, 03/25/2011 - 01:24 | Link to Comment Dave
Dave's picture

Sounds to me like you're scraping up some bullshit.

Fri, 03/25/2011 - 10:18 | Link to Comment Alea Iacta Est
Alea Iacta Est's picture

Don't forget that when you are linking the flux capacitor to the klystron modulator, you have to be sure to not cross the streams.

Thu, 03/24/2011 - 22:18 | Link to Comment sneering nihilist
sneering nihilist's picture

thanks for the link. i can understand the difficulty in keeping track of things when you are posting 30+ times a day. maybe it's time to slow down a bit?

Fri, 03/25/2011 - 05:48 | Link to Comment emsolý
emsolý's picture

http://www.youtube.com/watch?v=pqDhKFqDk34

:-) (just try to sleep less)

Thu, 03/24/2011 - 22:26 | Link to Comment X. Kurt OSis
X. Kurt OSis's picture

Pull up a chart of rolling 10 year moving averages in M2 and CPI as far back as you can go (put them on seperate axes).

If we actually get some velocity out of these broken banks, hyperinflation is guaranteed, since the Fed won't be able to reel it in they way they might have been able to in the past.

Thu, 03/24/2011 - 21:58 | Link to Comment tekhneek
tekhneek's picture

What's that shit called? Oh. Deja vu. Forgot about that.

Check this fucking shit out: http://upload.wikimedia.org/wikipedia/commons/thumb/9/93/German_Hyperinf...

Dear 6 pound 8 ounce baby Jesus.. don't even know a word yet...

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

hahaha...that movie sucked though

Thu, 03/24/2011 - 22:06 | Link to Comment tekhneek
tekhneek's picture

Your movie sucks.

Thu, 03/24/2011 - 21:58 | Link to Comment trgfunds
trgfunds's picture

"There is no hyperinflation coming. There is a deflationary DEPRESSION coming." -- Karl Denninger

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

Prove it. Now. Or lose your account.

Edit: Ah, screw it. You're done ----------

QE2 - The largest tax ever levied on The entire world - and entirely illegal.
There's no Bondzilla eh? Hmmm.... we'll see about that.

 

Last modified: 2011-03-24 11:53:21 by genesis

 

LMFAO. Saw this tonight

 

Fri, 03/25/2011 - 00:31 | Link to Comment TBT or not TBT
TBT or not TBT's picture

Illegal in the sense that the Constitution forbade this, or "illegal" in some vague sense?

Thu, 03/24/2011 - 21:59 | Link to Comment Oh regional Indian
Oh regional Indian's picture

Everytime I see one of these charts, I'm reminded of the time I watched Al Gore do hsi Schtick live in San Francisco, perhaps one of his first (was it his first?) Incontinent Truth lectures.

I remember buying the thing, hook, line and sinker, even though he looked un-naturally shiney.

All I can see is that no good ending is planned or forseen from this except the mother of all re-sets. That could be a major cat-ass-trophy someone knows about or the expansion of war around the globe, which usually pushes people into abject surrender out of abject fear.

Someone is knocking at the gates and someone is in the belly of th egift horse, which we are of course advised never to look into the mouth of. How convenient, eh?

The faster something rises, the faster it usually falls. I'm sure some wise man said it better.

ORI

http://aadivaahan.wordpress.com/2011/03/24/lets-start-from-the-very-beginning-a-very-good/

 

Thu, 03/24/2011 - 23:19 | Link to Comment ATG
ATG's picture

Gotta agree

Thu, 03/24/2011 - 22:06 | Link to Comment slewie the pi-rat
slewie the pi-rat's picture

tyler, yer makin' this too EZ, i think...

you shoulda put  Meanwhile Afterhours... between the IMF just now having $1/2tril for "some threat to the international monetary system" and the idea that we might need some "off-balance sheet" do-re-mi pdq, due to a pesky debt ceiling.

Thu, 03/24/2011 - 22:36 | Link to Comment slewie the pi-rat
slewie the pi-rat's picture

lol---batter lite then over

Thu, 03/24/2011 - 22:13 | Link to Comment Atomizer
Atomizer's picture

Follow me on this for a moment.

Professor Joseph Stiglitz - 2/10/2009

http://www.youtube.com/watch?v=E4MAifsp-8E

New Ideas for a New World: Joseph Stiglitz - 3/14/2011

http://www.imf.org/external/mmedia/view.aspx?vid=845645400001

Lets switch gears & review BIS. Compare Tyler's posted chart vs. BIS organ grinder w/monkey & tin cup desperation. Focus on Foreign Exchange trading in emerging currencies portion. Spoiler, taxation & globalisation fees.

BIS Quarterly Review March 2011 - International banking and financial market developments

Highlights of the BIS international statistics - BIS Quarterly Review, part 2, March 2011

This is a game of Liar's poker. Start looking at the numbers from all 3 parties. You will plainly see who is bluffing.

 

Thu, 03/24/2011 - 22:27 | Link to Comment penisouraus erecti
penisouraus erecti's picture

Wow.....apparently anyone can be a Nobel Laureate these days

Thu, 03/24/2011 - 22:09 | Link to Comment Great Dane
Great Dane's picture

"......And once this surging monetary base is converted from excess reserves to currency in circulation, that is the moment when Weimar comes a-knockin'"  THAT'S what I have been waiting on for seems a few years now. WHEN?  The Bernank could force banks to lend if he charged them instead of paying them to hold the precious fiat.

Thu, 03/24/2011 - 22:31 | Link to Comment disabledvet
disabledvet's picture

charge who?  the game is up..."Bank of America, you suck" appears to be the Beranke..."put" i guess.  Not that I....

Thu, 03/24/2011 - 22:14 | Link to Comment Rogerwilco
Rogerwilco's picture

And once this surging monetary base is converted from excess reserves to currency in circulation

Best Christmas shopping season evah!

Thu, 03/24/2011 - 23:16 | Link to Comment ATG
ATG's picture

Hey, but no inflation /sarcasm off/

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

"I can't believe you like money too. We should hang out."

Fri, 03/25/2011 - 00:32 | Link to Comment TBT or not TBT
TBT or not TBT's picture

Your shit is liiike, all fucked up.

Fri, 03/25/2011 - 10:44 | Link to Comment penisouraus erecti
penisouraus erecti's picture

Lots of tards livin kick ass lives out there.

Thu, 03/24/2011 - 22:36 | Link to Comment Payable on Death
Payable on Death's picture

"And once this surging monetary base is converted from excess reserves to currency in circulation, that is the moment when Weimar comes a-knockin'."

When will that be, and how?

Thu, 03/24/2011 - 22:38 | Link to Comment jimijon
jimijon's picture

Hey hasn't it been five days since the court ordered the Bernank to show us the money?

Thu, 03/24/2011 - 22:37 | Link to Comment penisouraus erecti
penisouraus erecti's picture

A little off topic, but I have to give Tyler Durden his props. Reading through most (who has time for all) the postings out here for several months I think this site embodies all of the things that make "the powers that be" fear openess and the bringing of information out in the daylight. That darn internet - "they" can't control it, and "their" arrogance and hubris can be put out there for all to see almost instantaneously.

Awesome job, great site!

 

Thu, 03/24/2011 - 22:44 | Link to Comment DoctoRx
DoctoRx's picture

+QE3

Thu, 03/24/2011 - 22:44 | Link to Comment davepowers
davepowers's picture

yup

Thu, 03/24/2011 - 22:51 | Link to Comment jimijon
jimijon's picture

Socialocracy in action!

jimijon.blogspot.com

Time for a real new governance/third party.

Thu, 03/24/2011 - 22:43 | Link to Comment davepowers
davepowers's picture

The surge in bank reserves, created by a form of printing called 'typing,' isn't just used to pay for QE 2 and repaying the Fed's big loan from the Treasury, but Federal government operations as well. Just in the last week, the FED covered $30 bn in Treasury checks written on the Treasury's checking account at the FED by adding that number to bank reserves.

Typing is paying for most everything these days.

Thu, 03/24/2011 - 22:43 | Link to Comment Republican Lackey
Republican Lackey's picture

Not one conflicting idea on this whole board. PM's are destined to  crash.

Thu, 03/24/2011 - 22:46 | Link to Comment Seasmoke
Seasmoke's picture

i never been anywhere, where everyone is a contrarian.....it does make me feel uneasy, but so far i have been able to enjoy my time here

Thu, 03/24/2011 - 23:12 | Link to Comment Richard Head
Richard Head's picture

Feel free to commiserate with smails, robot, meth man...

Thu, 03/24/2011 - 22:46 | Link to Comment JollyRoger
JollyRoger's picture

It's comforting to know that if I save dilligently, my retirement account will one day be

worth enough to buy a loaf of bread.

 

http://silvercointrader.com/2011/03/adjusted-monetary-base-says-invest-in-precious-metals-or-ill-destroy-your-savings-ha-ha/

Fri, 03/25/2011 - 08:06 | Link to Comment tarsubil
tarsubil's picture

That might be a little optimistic. Ever hear the story of the 500K mark (or something similarly ridiculous) postal stamp?

Thu, 03/24/2011 - 22:55 | Link to Comment Caviar Emptor
Caviar Emptor's picture

The new 'Race to the Bottom' is a race to the top of money printing. 

How it will end: he who prints fastest wins

Thu, 03/24/2011 - 23:27 | Link to Comment sagerxx
sagerxx's picture

"He who prints fastest wins"

Hm...howzabout:

"He who prints fastest loses last."


VIVA! -- Sager

Thu, 03/24/2011 - 23:03 | Link to Comment dick cheneys ghost
dick cheneys ghost's picture

A huge national debt and yet General Electric pays no Taxes......and gets $3.2 billion credit................unreal

 

 

http://nakedempire2.blogspot.com/

 

Thu, 03/24/2011 - 23:09 | Link to Comment ATG
ATG's picture

GE with $95 B Commercial and Residential mortgages on life support

Fri, 03/25/2011 - 01:36 | Link to Comment Dave
Dave's picture

Generals are special.

Dynamic Electric Motors...

Thu, 03/24/2011 - 23:05 | Link to Comment jtmo3
jtmo3's picture

"the entire $200 billion buffer that had previously afforded the Treasury breathing room with the looming debt ceiling, is now gone, and next steps include such drastic measures as a partial or complete government shutdown"

If you really belive that, you're being foolish.

Fri, 03/25/2011 - 04:01 | Link to Comment Bicycle Repairman
Bicycle Repairman's picture

"complete government shutdown"

LOL.

Thu, 03/24/2011 - 23:06 | Link to Comment ATG
ATG's picture

Market collapse pending?

Annual AMB still very negative

http://research.stlouisfed.org/fred2/graph/?chart_type=line&s[1][id]=BASE&s[1][transformation]=pc1

Thu, 03/24/2011 - 23:18 | Link to Comment XRAYD
XRAYD's picture

 

Assassinated Japan Finance Chief Invoked

 

 

“If a central bank starts to underwrite government bonds, there may be no problems at first, but it would lead to a limitless expansion of currency issuance, spur sharp inflation and yield a big blow to people’s lives and economic activities,” as has happened in the past, Shirakawa said three days ago.

The BOJ also has a separate self-imposed rule of not holding more JGBs in its portfolio than banknotes outstanding. Bank of Japan Governor Shirakawa today said the BOJ is “currently buying a large amount of government bonds” to offer abundant cash to financial markets.

Japan’s fiscal spending in the 1930s was used to build up the military in the run-up to World War II. Takahashi later made enemies when he attempted to cut military expenditures to reduce inflation. When military officers revolted during the so-called Feb. 26 Incident of 1936, they assassinated Takahashi along with other top officials.

 

http://www.bloomberg.com/news/2011-03-24/boj-s-shirakawa-wrangles-with-lawmakers-seeking-bond-purchases-after-quake.html

Thu, 03/24/2011 - 23:18 | Link to Comment XRAYD
XRAYD's picture

.

Thu, 03/24/2011 - 23:50 | Link to Comment gwar5
gwar5's picture

The Bernank

If this Fed's a rockin'

Don't come a knockin'

Fri, 03/25/2011 - 00:37 | Link to Comment Hook Line and S...
Hook Line and Sphincter's picture

Gas, Grass, or your 401k's Ass... Nobody Rides for Free  

(when you hitch a ride from the Bernank)

Fri, 03/25/2011 - 00:46 | Link to Comment holdbuysell
holdbuysell's picture

Next Friday is April 1st...April Fool's Day.

Fri, 03/25/2011 - 01:04 | Link to Comment unclebigs
unclebigs's picture

Wheat is down 20% from it's recent high.  How come there is no mention of that but the price rise was ballyhoooed constantly?

 

 

Fri, 03/25/2011 - 05:11 | Link to Comment props2009
props2009's picture

Why is portugal such a problem

portugal,education,literacy,ireland,socrates,bailout,debt,deficit

http://dawnwires.com/investment-news/why-portugal-is-such-a-burden-on-th...

Fri, 03/25/2011 - 05:15 | Link to Comment BruntFCA
BruntFCA's picture

Do people really think that Congress is relevant anymore?
Afterall the US has gone into another de-facto war by-
passing Congress totally
.

Should the debt "ceiling" be breached I would expect
the Fed/Treasury et al will just pretty much carry on. I
mean Bernanke can engage in trillions via currency swaps
with no oversight; bailed out his mates etc etc. Wallstreet
will likely find some pretext to do what the hell they want.

Fri, 03/25/2011 - 07:33 | Link to Comment rich_wicks
rich_wicks's picture

What surprises me is that our government has any credibility at all at this point.  Who believes the government?  Who trusts them to do anything right?  Who believes what they say?

I know a large proportion of people ignore the government, but how can anybody that pays attention to them, take them at all seriously at this point?  It's just a circus of clowns and liars.  Our government, at least our Federal government, is a complete joke.  It's blatantly obvious that they have no idea idea what they are doing, that the don't read the bills they sign into law, that they lie through their teeth if you can call reading speeches off from a teleprompter "lying".

It's just a big joke now - a complete sham.

Watch the government "shut down".  It won't change anything in the government.  Maybe a few less people will stop showing up to work, that's about it.

Fri, 03/25/2011 - 08:11 | Link to Comment tarsubil
tarsubil's picture

"Who believes the government?  Who trusts them to do anything right?"

Way, way, way, way, way, too, too, many people... (sing while playing the blues)

Fri, 03/25/2011 - 09:55 | Link to Comment Silver Surfer 1985
Silver Surfer 1985's picture

Yeah, yeah gubamint spending is just wonderful for all economies worldwide. That's the ticket! - Dr Paul Krugman

http://www.nytimes.com/2011/03/25/opinion/25krugman.html?_r=1&smid=tw-NytimesKrugman&seid=auto

 

Suprised that Tyler didn't post this article yet. Cheers!

Fri, 03/25/2011 - 12:22 | Link to Comment Robert-Paulson
Robert-Paulson's picture

I don't know why this chart is such a big deal

 

Our GDP is up and the M2V is going down.

 

Someone explain 

 

 

Do NOT follow this link or you will be banned from the site!