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The Weekly Chart That Needs No Introduction Or Explanation

Tyler Durden's picture





 

...

(we'll present our traditional weekly Fed balance sheet update shortly - nothing pretty there either)

 


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Thu, 02/24/2011 - 20:29 | Link to Comment IdiotInvestor2
IdiotInvestor2's picture

Oh so that's what is to be used to extrapolate SP500 value at a future date.

Thu, 02/24/2011 - 20:36 | Link to Comment knukles
knukles's picture

Coefficient of correlation between M2 and S&P 500 has been running at some 88% during period since introduction of ZIRP, TARP, QE, etc.
Classic liquidity effect (whether is or not's another question for another time)

Thu, 02/24/2011 - 21:31 | Link to Comment BearishFeijoadaSushi
BearishFeijoadaSushi's picture

omg lol wft!?

Fri, 02/25/2011 - 05:52 | Link to Comment Lets Hang Parliament
Lets Hang Parliament's picture

Do the symbols on these notes represent being between a rock and a hard place I wonder?

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

"Classic liquidity effect ..."

It has nothing to do with liquidity.  Equity markets are low-volume / no-volume these days.

More like classic market-pumping effect ...combined with classic inflationary effect.

Fri, 02/25/2011 - 07:01 | Link to Comment DavidC
DavidC's picture

IdiotInvestor2
Excellent! That made me laugh!

DavidC

Thu, 02/24/2011 - 20:31 | Link to Comment Escapeclaws
Escapeclaws's picture

It seems like there's a very slight bend starting to occur around October. It's almost imperceptible.

Thu, 02/24/2011 - 20:31 | Link to Comment asdasmos
asdasmos's picture

This is getting out hand fast.

Thu, 02/24/2011 - 20:50 | Link to Comment Max Hunter
Max Hunter's picture

Nah... I'm sure everything will be fine.. ;)

Thu, 02/24/2011 - 21:06 | Link to Comment The Third Man
The Third Man's picture

Getting out of hand? That woodie is the result of a lot of stroking.

Fri, 02/25/2011 - 01:32 | Link to Comment JW n FL
JW n FL's picture

if the erection lasts longer than 36 months... buy PM's, Guns and Food! Plus some physical solar / wind power and please dont forget a water source you control.

Fri, 02/25/2011 - 03:42 | Link to Comment Rodent Freikorps
Rodent Freikorps's picture

My wife and I decided, if TSHTF, we are gonna steal a 60 foot yacht and just sail around the gulf, eat sea food and trade dried fish for coffee.

Could be worse.

Fri, 02/25/2011 - 09:24 | Link to Comment HooliganLite
HooliganLite's picture

That's a good plan but don't forget to take some hay for your rainbow-shitting uincorn.

Fri, 02/25/2011 - 09:37 | Link to Comment Rodent Freikorps
Rodent Freikorps's picture

We already ate him. Think I should have gone with a forty footer?

Fri, 02/25/2011 - 16:05 | Link to Comment HooliganLite
HooliganLite's picture

I don't know.  That seems like an awfully big unicorn but I suppose you would have had leftovers.

Thu, 02/24/2011 - 20:30 | Link to Comment The Franchise
The Franchise's picture

Does that thing last more than 4 hours?

Thu, 02/24/2011 - 20:32 | Link to Comment Sam Clemons
Sam Clemons's picture

Is that an inverse real dollar value chart?

Thu, 02/24/2011 - 20:32 | Link to Comment Spalding_Smailes
Spalding_Smailes's picture

But , but , but ..... 

 

What about " M2 " in China, the next reserve currency ...... Lol'

 

Another .... yawn.

Thu, 02/24/2011 - 20:37 | Link to Comment asdasmos
asdasmos's picture

I am curious as to what you think about the FEDs holdings of US debt and how you would unwind it......

Thu, 02/24/2011 - 20:40 | Link to Comment Sam Clemons
Sam Clemons's picture

Please, they never plan to sell it.  Just like most the other sh*t they bought using money created out of thin-air to bailout the wealthy elite and letting the rest of the world pay for it via higher prices. 

But they (the Fed) can't take losses.  They own the press and are un-auditable.  There isn't an exit plan.  The exit plan is to continue creating as much debt as possible.  It is already going asymptotic - that is the only way to keep the Ponzi scheme going as it needs more and more.

Thu, 02/24/2011 - 20:52 | Link to Comment ZerOhead
ZerOhead's picture

"There isn't an exit plan."

I can't understand how otherwise 'smart' people can't get this. We have gone way way beyond NEVER NEVER LAND. I for one do not even wish to know where the trillions in Fed Central Bank 'swaps' have gone. Probably Israel... or repatriated to wherever to join the $2.3 trillion missing pentagon dollars Rummy was talking about on 9/10.

 

Fri, 02/25/2011 - 04:01 | 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 - 17:08 | Link to Comment ZerOhead
ZerOhead's picture

Bernanke...

What a fool believes... he sees!

Fri, 02/25/2011 - 18:38 | Link to Comment Sam Clemons
Sam Clemons's picture

GREAT post.  Thanks. 

Thu, 02/24/2011 - 20:51 | Link to Comment Spalding_Smailes
Spalding_Smailes's picture

Bernanke discusses plan to unwind Fed's balance sheet

 

............ " The traditional tools the Federal Reserve uses to conduct monetary policy areopen market operations, the discount rate, and reserve requirements.TheFederal Open Market Committee (FOMC) uses these tools to stabilize prices and promote economic growth and full employment. Over the course of a typical business cycle, the FOMC will adjust the federal funds rate, historically the primary policy tool, to achieve the Fed's dual mandate, thus promoting stable long-term economic growth. " .....................

http://www.frbatlanta.org/pubs/extracredit/10spr_econ_speaking_feds_bala...

 

............. " Jan. 10 (Bloomberg) -- Federal Reserve Vice Chairman Janet Yellen presented a possible timeline of about seven years before the Fed’s balance sheet is restored to normal levels, while saying the central bank’s asset purchases will end up creating 3 million jobs by 2012.


Yellen, speaking in Denver on Jan. 8, referred to a model created by Fed economists that assumes the central bank will complete its second round of large-scale Treasuries purchases within a year. The Fed’s balance sheet would stay “elevated” for two years before returning to a normal size over five years, she said, alluding to the economists’ research.

The timetable is “a reasonable proxy for what they might do,” said Allen Sinai, president and chief executive officer of Decision Economics Inc. in New York, who appeared on the same panel as Yellen.


Unwind Assets


Under the simulation, the Fed “renormalizes the size and composition of its security holdings within five years.” In order to achieve that path, the paper said, the Fed would unwind assets at a pace of about $80 billion per quarter through the middle of 2017." ....................

http://www.businessweek.com/news/2011-01-10/yellen-speech-may-offer-prox...

 

Thu, 02/24/2011 - 21:03 | Link to Comment ZerOhead
ZerOhead's picture

Under the simulation, the Fed “renormalizes the size and composition of its security holdings within five years.” In order to achieve that path, the paper said, the Fed would unwind assets at a pace of about $80 billion per quarter through the middle of 2017."

And baby Jesus is going to come back and restore manufacturing capacity and Mohamed will handle paying down the debt in 6 easy payments of @$1T.

 

The question was HOW.

Consider the effects of any withdrawl of liquidity from a fragile if not terminally gutshot economy.

You won't like the answers you find.


 

Thu, 02/24/2011 - 21:10 | Link to Comment penisouraus erecti
penisouraus erecti's picture

What, we're not the worlds largest manufacturer and running at full employment? Really?

Thu, 02/24/2011 - 21:19 | Link to Comment ZerOhead
ZerOhead's picture

10% of American jobs are in manufacturing. Some merely involve the assembly of imported (Chinese) parts. We outsourced our jobs to lower paid Chinese workers in exchange for the dream of a new high tech future with better jobs. Unfortunately things didn't work out quite as planned.

For comparison purposes German and Japanese manufacturing sectors employ between 20-25% of all jobs.

China is getting close to 50% (Or was anyway..)

Thu, 02/24/2011 - 21:15 | Link to Comment Spalding_Smailes
Spalding_Smailes's picture

I have been talking about the booming manufacturing in Chicago since my first day on ZH. And the numbers back this up. ( After the fact )  

So QE2 is driving CAT, Starbux, McD's, Boeing ..... Lol'


Question. What's the GDP for the USA ? What's the GDP of China and the Eurozone together.... ?

Thu, 02/24/2011 - 21:30 | Link to Comment ZerOhead
ZerOhead's picture

Do your own homework will you.

By the way when you do... if you do... kindly take into consideration that the equivalency of a $5 Starbucks cup of Joe costs 25 cents in China. A $20 American haircut? Less than $1 most places in China...

And a reasonably priced $500 American hooker? Can't speak for China but in Thailand I hear they going for the price of a cup of Starbuck coffee.

Hey... why don't I sell you a freshly built $15 trillion dollar house for a $15 trillion dollar mortgage at .00000000000000000000000001%

Still affordable in monthly payment terms... but will have the effect of doubling the countries GDP!

Am I wrong?

Thu, 02/24/2011 - 21:38 | Link to Comment Spalding_Smailes
Spalding_Smailes's picture

 

List of countries by GDP (PPP) per capita

 

 

USA - Per Capita - $ 47,123 ( rank #6 )

China - Per Capita - $ 7,500 ( rank #93 )

Thu, 02/24/2011 - 21:43 | Link to Comment ZerOhead
ZerOhead's picture

You still haven't answered my hypothetical question my friend.

You appear to be a mindless 'cut and paster'. Call your boss up and get somebody smarter to this site.

Or at least someone who uses less page space!

 

Thu, 02/24/2011 - 22:12 | Link to Comment Spalding_Smailes
Spalding_Smailes's picture

 

You appear to be a mindless 'cut and paster'. Call your boss up and get somebody smarter to this site.

Or at least someone who uses less page space!

 

 

I did. Like most you change the subject with personal attacks. But alas, most ZHers will read my post " filled with facts " and learn something. But a doomer like yourself will not learn a thing, oh well.

Next.

What the next " reserve currency " ? Call up your boss, dad, whoever. Maybe have some fact before you post because you can rant about M2, QE 6, this & that all bullshit.

 

It's always hyperinflation is coming soon or the USA will lose it reserve status some day bla , bla, bla ... All hot air with no substance. Turn off glee and start reading ....

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

Convince me things will get better Spalding.. I really want to believe things will but you need to show me how.

The current path we are on leads only to ruin.

Sorry about the ad-hom... it was before you responded sans cut 'n paste.

Listen... If things are going to be just hunky dory I need to know. Just please don't tell me that QE is not an inflationary problem.

I have a brain. (However dysfunctional! :)

Fri, 02/25/2011 - 00:27 | Link to Comment mtomato2
mtomato2's picture

Enter ZerOhead.  Possibly the most tolerant and civil poster on the site.

+1000

Fri, 02/25/2011 - 14:01 | Link to Comment Hephasteus
Hephasteus's picture

Of course he's tolerant and civil. He's so goddamn smart he can politely kick your ass.

Fri, 02/25/2011 - 04:54 | 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...

 

Contrast this with the exponential function and $14Trillion Govt Budget...who ya tryin' to fool, us or yourself?

Thu, 02/24/2011 - 22:12 | Link to Comment JonNadler
JonNadler's picture

the GDP from 1980 to 2011 went up about 4.5 times

 

M2 went about 9 times

 

This is very bad for gold right AppalingSmells?

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

The funny thing is Nader, the money printing in China would make Ben & Greenspan blush ....

Thu, 02/24/2011 - 22:57 | Link to Comment Burnbright
Burnbright's picture

You realize they are peged to the dollar?

Thu, 02/24/2011 - 23:55 | Link to Comment tmosley
tmosley's picture

Pro~bably not.

Fri, 02/25/2011 - 01:09 | Link to Comment Spalding_Smailes
Spalding_Smailes's picture

Shit T, I turned you onto Pettis and said peg.

 

Funny with all your fantastic wisdom, you never reply when I talk about dollar denominated debt. Cat got your tongue or is it because I'm 100% right ...?

 

Gold bugs can't get around this issue. But you can keep talking about hyperinflation, soooooooooooome day thats the ticket, some day soon. Lol'

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

Actually, I just don't like replying to you because I don't like reading cut an paste BS.  I just plain don't read your posts.

Being so annoying people skip your posts doesn't make you "100% right".

The truth is, a person can only be truly proven "right" if he finds a way to monetize his predictions, and does so.  I have, and I have made a great deal of money.  You haven't.  You are stilling on failing dollars waiting for all the purchasing power in the world to flow to you even as you ignore the sum total of monetary history.  ONLY GOLD DEFLATES.  Paper inflates.  The deflates slightly, then HYPERINFLATES.

I don't care what a loser like you thinks.  Show me the money.  Until you do, you have nothing, and no-one should pay you any mind.  Don't expect further replies.

Fri, 02/25/2011 - 18:45 | Link to Comment Sam Clemons
Sam Clemons's picture

I don't get how the debt-deflation guys don't understand that all that debt that is being created is being spent in the present driving prices up.  I also don't get how they refuse to grasp that all future costs have to be paid with more money from more debt.  Yes, they're right, there will be a ton more debt, but if we always pay it off with paper from issuing incrementally more debt, then there simply won't be debt deflation. 

How do people expect unfunded liabilities to be paid off? 

Fri, 02/25/2011 - 00:06 | Link to Comment ColonelCooper
ColonelCooper's picture

So would China be Thelma to our Louise, or vice versa?  Winning the race to the bottom is a short lived victory.

Fri, 02/25/2011 - 00:34 | Link to Comment mtomato2
mtomato2's picture

Colonal, 

So nice to see you here on this delightful forum.  I hope you have had a smashing day, and that all is well in Cooper land.  (insert pix of flowers and bunnies.  And rainbows.)  Absolutely swell to see that your posts are...

DAMMIT!  There I go again!

Fuck you, Fuckball!

Was that better, ala FW from FL? :-D

 

Seriously:  Have a good'n

 

Fri, 02/25/2011 - 04:58 | Link to Comment Rodent Freikorps
Rodent Freikorps's picture

But glorious. We're all gonna die anyway. Might as well be famous.

Pain is temporary.

Chicks dig scars.

Glory is forever.

Thu, 02/24/2011 - 23:22 | Link to Comment cranky-old-geezer
cranky-old-geezer's picture

"... while saying the central bank’s asset purchases will end up creating 3 million jobs by 2012."

They haven't created one single job, and won't.

Remember, these are the people who didn't see the '08 financial crash coming, and have a 100% failure record on their predictions. They're wrong every single time.

Fri, 02/25/2011 - 04:50 | Link to Comment Bob Sponge
Bob Sponge's picture

There might be some jobs created in the funeral/cremation business as more and more starving unemployed commit suicide, freeze to death, etc. Civil unrest may also add deaths.

Fri, 02/25/2011 - 06:32 | Link to Comment FEDbuster
FEDbuster's picture

Our local landfill charges a flat $45. for dead horses, so dead people should be less than $20. based on weight.

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

 

Over the last 10 years, especially since the 2008 crash, the Chinese government has taken several actions which, although correct at the time, have fanned the price of commodities more so than QE2. Such moves include:

  • The 2008 stimulus package that pumped $584 billion into the Chinese economy. In 2010, China's M2 money supply rose 19.7% over the prior year. With money supply now at 73 trillion yuan, it is larger than China's GDP of 67.5 trillion . By comparison, the U.S. M2 as a percentage of GDP is close to 0.6. That will create some inflation.
  • For many years, the Chinese government has artificially kept prices of electricity, water, and natural gas low through subsidies to promote economic development. Unfortunately, this has promoted waste by end users and was expensive to the government. Last year, they increased these prices to true market levels. This came as a shock to many and added to perceptions of greater inflation.
  • To deal with an over-heated high- and middle-end housing problem in coastal cities last year, the Chinese government implemented a number of draconian macroeconomic policies. They've worked as hot money has been taken out of the housing sector. Yet, evidence existsthat speculation and hoarding has flowed into food items such as onions, beans, peanut oil, corn, ginger, apples, and sugar. Food CPI increased by almost 12% last year, which contributed to two-thirds of the overall increase in the Chinese CPI.
  • The Chinese government has been trying to migrate the Chinese economy from one driven by foreign exports to domestic consumption. This is seen as more stable and less vulnerable to some foreign Lehman-like shock in the future.

    The government's efforts have been successful. Last year, Chinese consumer spending increased 18.4% to 154 trillion yuan from the prior year. Yet, such consumption doesn't occur without requiring more raw materials to build televisions and appliances. It's a big reason why -- in the last year -- cotton was up 88%, wheat 54%, sugar 38%, and copper 21%.

  • The migration of many rural workers to bigger cities to pursue higher standards of living have resulted in stories of "empty villages" back in the country with insufficient labor to grow the needed crops. Lower agricultural demand in turn drives up prices. China has been a net importer of food for many years already. As purchasing power increases in the coming years, the Chinese desire to feed themselves a higher protein diet will further exacerbate prices.
  • With an expectation that the yuan will need to be revalued upwards in the coming years and with China's relative outperformance in the global economyhot money continues to flow into China . That creates additional inflationary pressures.
http://www.thestreet.com/story/11019783/1/chinas-complex-inflation-probl...

 

Thu, 02/24/2011 - 21:12 | Link to Comment ZerOhead
ZerOhead's picture

Over the last 10 years, especially since the 2008 crash, the Chinese government has taken several actions which, although correct at the time, have fanned the price of commodities more so than QE2. Such moves include:

 

So it's not freshly created (out of thin air) trillions sloshing around in the global financial system that is causing commodity inflation.

It was the goddamn Chinese government!

Thanks for the enlightenment, now I finally know what drives commodity prices!

Thu, 02/24/2011 - 21:20 | Link to Comment Spalding_Smailes
Spalding_Smailes's picture

That's right. In China.

Read the piece again. What's China's M2 again/GDP.

But , but, but .... I thought HYPERINFLATION is just around the corner, just wait a bit, it's coming soon Lol'

 

And tell me again who is going to take over the reserve status from the USA ? China - Euro .... Fail, next.

Thu, 02/24/2011 - 21:33 | Link to Comment ZerOhead
ZerOhead's picture

So you believe there are no alternatives to the US dollar right?

You will learn a hard lesson my friend! :)

Thu, 02/24/2011 - 21:42 | Link to Comment Spalding_Smailes
Spalding_Smailes's picture

O.K. What's the Alternative ? :)

 

I can't find one ..... And not enough Gold above / below ground that can support global finance. That's why they dump'd it in the first place. Forex, Global Finance ect .... The market is too big.

Thu, 02/24/2011 - 22:14 | Link to Comment ZerOhead
ZerOhead's picture

Good... at least we now have a conversation. And at least you realize we are currently in one hell of a jam. And as you have rightly pointed out there is no simple currency solution.

And I gotta tell you up front... I'm not such a big fan of Global finance these days and markets... as we are finding out... are not the true economy anyway.

What is real are the nuts and bolts businesses that never even get listed on the global market gaming boards.

Whether GM is selling for $10 a share or $10,000 a share is largely irrelevant to the functioning economy. They build cars. If the cars sell for more than it cost's to produce they make a profit... if not.. perhaps a loss. The price of the stock has (largely) no effect on the day to day business they are engaged in.

And when the creation of money becomes itself a bubble weve got serious problems heading our way.

We shall see the inevitable loss of purchasing power play out for now until an event triggers either collapse or hopefully merely a hard/soft landing to a much lower standard of living for at least the majority of western developed nations.

As confidence in the viability of fiat currencies continue to erode people will continue buying assets like PM's, base metals, stocks(unfortunately) and my personal preference?

Distressed real estate.

Fri, 02/25/2011 - 00:40 | Link to Comment mtomato2
mtomato2's picture

What follows is so stupid and anecdotal, I know, but check it out:

I bought a .99 cent double stack today at Wendies for $1.46.

Is that O.K.?  Is everything fine?  Should I be worried?

Fri, 02/25/2011 - 00:50 | Link to Comment mtomato2
mtomato2's picture

.

Thu, 02/24/2011 - 22:54 | Link to Comment Seer
Seer's picture

"And not enough Gold above / below ground that can support global finance."

What this actually should say is this:

"And not enough physical resources that can support global finance."

Numbers, paper and finance, now There's something to base the future on!  Hey Fred!  I'll pass on those scarce (real) physical resources and go with that stuff on the chaulkboard!

Never mind that there are some 44 million on food stamps in the US and that since the early 70s (peak oil production, last time US was able to export oil [read "have a trade surplus"]) inflation adjusted worker salaries are actually LESS today.

Thanks for playing!

Thu, 02/24/2011 - 23:53 | Link to Comment Burnbright
Burnbright's picture

I can't find one ..... And not enough Gold above / below ground that can support global finance.

Why bother and argue with logic like that! It's not like their are a finite number of things that could possibly be traded for a finite amount of gold or silver. Thats just way too wacky of an idea.

Fri, 02/25/2011 - 01:03 | Link to Comment Spalding_Smailes
Spalding_Smailes's picture

How many people own gold in the USA 5% maybe. 

 

So is CAT trading equipment in gold some day, will GM sell cars for gold some day, will US Steel, McDonalds, Tata, Airbus, Heidelberg ..... Never.

The world will never run on a gold standard again. Maybe in 20-30 years it will be 5% of some basket.

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

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

 

I haven't even read the article, don't need to.  This is what is driving EVERTHING we are seeing today, including what is happening in Northern Africa, Middle East.  OIL is the world's true currency, and nobody wants to buy it using the dollar anymore.  It is now a global push, and the push is coming from EXTREMELY powerful interests.  The US can take our Football and go home, but the world doesn't play Football, they all prefer Soccer. 

Fri, 02/25/2011 - 05:00 | Link to Comment StychoKiller
StychoKiller's picture

Never is a long time.  Check your premises.

Fri, 02/25/2011 - 00:19 | Link to Comment AUD
AUD's picture

I can't find one

That's cause you know nothing about global finance. The gold standard & its corollary in the Real Bills market worked just fine before various governments decided to destroy it & their own credit during the First World War.

There is more gold now than ever before, silver too.

Kaboom!!!

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

You have no clue. By going off the gold standard we spun a global web of debt that has given the USA total control. They can't de-peg. And everyone thought China pulled the wool over our eyes by stealing our manufacturing but look who's laughing now. No peg said manufacturing complex gets blowtorched and the banks that have borrowed cheap money because of the peg. Now they are fucked, sucking Ben's cock.

Turn off your t.v. and spend the next 6 months reading about dollar denominated debt.

 

See Russia, China, the EU, Brazil all of the currencies go up in flames before said dollar. Mountains of debt in said countries banking system built upon said dollar. Sure they hate it but, but, but they can't extract from said dollar denominated debt.

 

They must play the game. You will see a shared global currency some day but this will happen with our blessing and we will be 50/50 at the very least. Many, many years in the future from the above post highlights, China is far, far away with her $7,500 per capita and the M2 printing is epic and I thought she was the next big thing. Fail.

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

Hey spalding, what would happen if a few countries stopped playing the game and then a few more followed...... and then a few more.

 

Lets say by chance, an event with unintended consequences set off these chain of events. For instance the idea above for whatever reason, could be by accident or by a few slowly shifting things around thereby reaching a tipping point (flash dumping of US denominated paper).

 

What do you think would happen? Where would the capital go?

Fri, 02/25/2011 - 01:49 | Link to Comment Spalding_Smailes
Spalding_Smailes's picture

Well that would be armageddon, I would head towards my local church.

 

But they can't walk away from the dollar, the host countries banks would go up in flames and said country is done, no way around this issue. Banks and business and all the central banks are tied into the dollar for better or worse. That can't de-peg and they can't stop buying treasuries. If China buys the yen or euro's well then Japan must buy treasuries or they import the debts so the money flows back toward the US anyway.

 

It's fucked up but they are stuck with the dollar.

 

 The rise and fall of the yen

 

............. " What would that imply about the accumulation of the renminbi?  There is a fierce race on among US and European investment banks to predict the earliest date by which China will be the world’s leading economy, and I think the winners say that China will be around 20% of the world in 2020.

I am very skeptical that this will occur, but let’s say that it does.  This would imply that to replace the dollar sometime after 2020 China would probably need to run a current account deficit of 1.2-2.5% of its GDP.  Of course the renminbi might not replace the USD but simply match it.  In that case let’s assume China needs to run a current account deficit of half that amount.

Can it?  Maybe, but I am not sure that is very likely.  Look at the case of Japan.  Twenty years ago Japan already represented nearly 18% of the world (China and Japan are both 8% today) and it was widely assumed that it would overtake the US within one or two decades and that the yen would replace, or at least reach par with, the USD.

But this didn’t happen.  The huge Japanese domestic imbalances – similar to but much lower than China’s today – forced the country into a long and difficult adjustment.  Here is what an article in Sunday’s New York Times says:

In 1991, economists were predicting that Japan would overtake the United States as the world’s largest economy by 2010. In fact, Japan’s economy remains the same size it was then: a gross domestic product of $5.7 trillion at current exchange rates. During the same period, the United States economy doubled in size to $14.7 trillion, and this year China overtook Japan to become the world’s No. 2 economy.

What happened to Japan’s then unimaginably large current account surplus?  It came down significantly, but it never became a current account deficit.

In fact the evolution of the Japanese surplus is interesting.  Two things drove it down relative to the global economy.  First, Japan’s size as a share of the world economy dropped by more than 50%.  Second, Japan’s surplus as a share of GDP declined, although not nearly as dramatically.

In other words there was a slow, painful rebalancing within Japan as household consumption growth declined over the past two decades (I think to about 1.5-2.0% annually) but still outpaced GDP growth, which declined much more sharply (close to 0%).  And there was a sharper global rebalancing as Japan’s current account surplus dropped even more as its share of global GDP fell. " ..................

 

http://mpettis.com/2010/10/it-isn’t-easy-being-green/

 

 

Fri, 02/25/2011 - 03:44 | Link to Comment asdasmos
asdasmos's picture

I am just wondering, 'Where would the capital go?'

 

Again, lets say it happened, it would be clear some major re-balancing would take place. Where would we see funds flow?

 

Specifically, what would armageddon look like? Would it be so bad, or just a reshuffle to a country or couple of countries being thrust in to the reserve status? (albeit with  an obvious, clear and protracted downturn)

Fri, 02/25/2011 - 01:48 | Link to Comment crazyjsmith
crazyjsmith's picture

Spalding...

You speak as though you have seen this before?  You must have lived in a parallel universe where this shit has happened before, I am here to tell you that this is nothing but a large experiment gone wrong, and NOBODY can predict ANY time frame as you are here doing so today. 

The replacement for the dollar is getting put in place as we speak, it takes time, but as you have seen everything unraval at a break neck pace, I feel fairly confident that it will happen MUCH faster than you think.  Just as we were told there would be a slow soft landing of the Real Estate bubble by The Bernank and Greenspan.. and now we are getting fed that same crap here, by you! And who the hell are you? 

The Globalist Bankers could care less about the dollar or the US, and are actively pursuing the SDR which is a basket of currencies and would REDUCE the need for the dollar.  End of story, not happily ever after.  Doesn't have to be replaced, but greatly reduced, and we are sure to feel the pain.  

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

It's the dollar or global bust.

 

............ " Astonishingly enough this was still pretty much the debate we had this week.  It is almost impossible to pick up a newspaper today without seeing several articles that directly or indirectly indicate how much worse things must get before we reach bottom, and yet there are still too many people who can’t understand the numbers.  I would argue that a lot of people, especially in China, think that it is mainly US pre-election posturing that is driving all of this anger.  If that is the case, why are we seeing article like this (“Fears of global currency war rise”) in the Financial Times?


Thailand is introducing a tax on foreign holdings of bonds, the latest in a string of attempts by emerging economies to curb destabilising capital inflows amid fears of a global currency war.  The Thai cabinet on Tuesday imposed a 15 per cent withholding tax on capital gains and interest payments for government and state-owned company bonds, a clear signal that it would take tough measures to curb inflows of “hot money”.

Or how about this one?

Japan has called on South Korea and China to “act responsibly” on exchange rates in an unusually strong statement ahead of the G20 summit of leading nations in Seoul, expected to be overshadowed by rising tensions over currencies.

The statement by Naoto Kan, Japan’s prime minister, adds to pressure on Seoul as the host of the meeting in November to broker a discussion on currencies despite some countries, including China, pushing to keep the issue low on the agenda.

In fact it seems that every third article in the front section of theFinancial Times indicates one way or another a country that is battening the hatches and preparing for a beggar-thy-neighbor world.

The problem is not pre-election posturing in the US.  It is much worse than that.  The problems is that the numbers actually do not work.  China and Germany need to grow their surpluses to maintain growth.  In fact China has to choose between an unhealthy overreliance on the trade surplus and an even unhealthier over-reliance on investment, as I mentioned in a comment in Bloombergyesterday.  Japan cannot allow its trade surplus to decline because with no demand growth this can only come about as a contraction in production.

On the other hand European deficits are collapsing as a consequence of the financial crisis.  And the US cannot tolerate a rapid increase in its deficits.  How does this math work?  Surpluses and deficits, after all, must balance to zero.

Well I guess one way to get this balance (here comes my modest proposal) would be for China to engineer a New Deal in America, which we could call Xin Fa’an (“new deal” in Chinese).  As I have discussed many times, most recently in my October 6 entry, mySeptember 29 entry, and my September 11 entry, Beijing needs the US to continue running a rising trade deficit in order to absorb Chinese overcapacity while China slowly rebalances its economy towards domestic demand, which will take many years.

There are two ways that the US can run a rising trade deficit.  Remember that a country’s current account deficit is equal to the excess of Investment over savings.  If the US runs a rising current account deficit, this just means that the excess of investment over savings has risen.

One way, of course, is for savings to decline.  There are two ways that can happen.

  1. US consumption can grow faster than US income.  Since savings is simply income minus consumption, as long as consumption grows faster than income, savings will decline.  Of course not only is it unlikely that US consumption will surge, but it would be terrible if it did.  The US consumes too much, and needs to bring this number down.
  2. US unemployment can rise.  As US companies fire workers, household income will decline.  If consumption declines at the same rate as income, or at a slower rate, gross savings will decline.  This, of course, is exactly what the US wants to avoid and why we are on the verge of a trade war.

.

The other way the US can run a rising trade deficit is for a surge in investment.  With a slowing world economy it is unlikely that private investment will rise, but as Joseph Stiglitz pointed out recently in a debate during the IMF/World bank meetings in October last week, the US is paradoxically in a very good position to increase investment because it has very poor infrastructure for its levels of development.  The US has tons of room for a major expansion in infrastructure and, unlike in China, almost any infrastructure spending is likely to be value creating. " ....................

 

http://mpettis.com/2010/10/xin-fa’an-a-modest-proposal-to-resolve-the-...

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

Spalding, as you say..."It's the dollar or global bust"

 

Well, TPTB are "banking" on a global bust.  That is the whole point.  No Dollar, will bring a global bust...everyone gets in line for the new currency, on our knees...

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 - 06:22 | Link to Comment Harlequin001
Harlequin001's picture

You said it yourself Spalding

For many years, the Chinese government has artificially kept prices of electricity, water, and natural gas low through subsidies to promote economic development... Last year, they increased these prices to true market levels. This came as a shock to many and added to perceptions of greater inflation.

Where's the problem with your perception?

Inflation won't sooooooooon be here, it's been here all along, everyone's just lied to avoid having to account for it as you say, 'to promote economic development...'

Now we have no choice...

Thu, 02/24/2011 - 23:44 | Link to Comment logically possible
logically possible's picture

In reply to the question above, All this money being borrowed from the Fed, how might you unwind it? "That might be a good question for Bernie Madoff."

Fri, 02/25/2011 - 05:06 | Link to Comment StychoKiller
StychoKiller's picture

Fear leads to anger, anger leads to hate, hate leads to the dark side.

I sense a growing disturbance in the Farce...

Pyramid building is a one-way task.

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

"I am curious as to what you think about the FEDs holdings of US debt and how you would unwind it......"

It won't be unwound.  It will be reduced to insignificance by hyperinflation.

$2 trillion treasury debt is meaningless when a home costs $2 trillion.

When the US dollar loses WRC status, Zimbabwe here we come.

Thu, 02/24/2011 - 21:20 | Link to Comment naughtius maximus
naughtius maximus's picture

eh hem that's Yuan, not Yawn.

Thu, 02/24/2011 - 20:33 | Link to Comment bania
bania's picture

context? it would be nice to see this against decades going back

Thu, 02/24/2011 - 20:40 | Link to Comment knukles
knukles's picture

LOL
Are we testy, cynical or just mischievous today? 

Thu, 02/24/2011 - 20:47 | Link to Comment hambone
hambone's picture

I want my economic data served sunny side up w/ whole wheat toast (noooo butter, extra jam...not jelly) on the side.  And I'd like it fast or I'll stop paying Tyler his outrageous salary!!!

Plus, I've got a little kink in my neck, Tyler, would you mind?

Thu, 02/24/2011 - 20:45 | Link to Comment Bananamerican
Bananamerican's picture

Ha! when did google add a "punk" function?

Thu, 02/24/2011 - 20:46 | Link to Comment Sam Clemons
Sam Clemons's picture

Hey Tyler.  Do you guys delete comments?  I had a comment deleted yesterday and am quite confused.

Thu, 02/24/2011 - 20:52 | Link to Comment Spalding_Smailes
Spalding_Smailes's picture

Yes. All the time ....

Thu, 02/24/2011 - 20:54 | Link to Comment Tyler Durden
Tyler Durden's picture

Sometimes the database overheats (literally) due to the comment volume. Typically results in comment double posting, and occasionally in comment elimination.

Thu, 02/24/2011 - 21:02 | Link to Comment plocequ1
plocequ1's picture

I like it when you hang with the guys, Tyler. You dont post and hide, Unlike Joe Weisenthal ( Yes, I am ashamed )

Thu, 02/24/2011 - 21:04 | Link to Comment Spalding_Smailes
Spalding_Smailes's picture

That's why ZH is number 1. Everything goes ....

Thu, 02/24/2011 - 21:08 | Link to Comment Max Hunter
Max Hunter's picture

What the hell Tyler.. That link didn't open any graphs, explain them to me and wipe my ass with moist cloth..

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

+

Fri, 02/25/2011 - 00:46 | Link to Comment mtomato2
mtomato2's picture

Yeah, but damn, it was funny as hell.  Never saw that one coming.

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

can u add a "comment elimination" button?  'cuz there are many posts which are evidently "poster elimination" ;-)

- Ned

 

Thu, 02/24/2011 - 20:54 | Link to Comment Clycntct
Clycntct's picture

TD Your scary your everywhere.
And Fast.

Thu, 02/24/2011 - 22:39 | Link to Comment darkaeye
darkaeye's picture

Methinks there is a cloning facility hidden away in ZH's attic.

Thu, 02/24/2011 - 20:34 | Link to Comment koeleköpke
koeleköpke's picture

can I buy M2 shares ?

Thu, 02/24/2011 - 20:35 | Link to Comment Dr. Porkchop
Dr. Porkchop's picture

Or better yet, one of them new fangled CEBOs.

Thu, 02/24/2011 - 20:44 | Link to Comment Mad Max
Mad Max's picture

{Joker face on}

You may be asking, how can I buy this wonderful product?  Well, don't worry.  Chances are you already own it!  Look in your wallet.  Right there, you hold M2 inverse certificates.  Congratulations!

Thu, 02/24/2011 - 20:49 | Link to Comment saulysw
saulysw's picture

can I buy M2 shares ?

Yes! They are called dollars.

Inverse shares : physical gold and silver.

Thu, 02/24/2011 - 20:52 | Link to Comment Sam Clemons
Sam Clemons's picture

Opposite actually.

Thu, 02/24/2011 - 20:55 | Link to Comment saulysw
saulysw's picture

Yes, I realized this and edited it while you were correcting me!

Fri, 02/25/2011 - 03:21 | Link to Comment cranky-old-geezer
cranky-old-geezer's picture

"Yes! They are called dollars."

Think of it as America Inc doing an open-ended ongoing never-ending IPO.

Let's say America Inc has a market value of $100 trillion.

Initial public offering is 10 trillion shares, selling at $10 per share.

But the IPO becomes an OEPO, open-ended, on-going. 

2nd offering is 10 trillion shares selling at $1 per share. 

3rd offering is 10 trillion shares selling at $0.10 per share. 

4th offering is 10 trillion shares selling at $0.01 per share. 

5th offering is 10 trillion shares selling at $0.001 per share. 

Along the way America Inc executives quietly give 50 trillion shares to family, friends, and cronies.

With 100 trillion shares outstanding, each share is worth $1.

Those who paid $10 per share, $5 per share,  how do they feel now?

Along the way 50 trillion shares are given as executive bonuses. 

Along the way 50 trillion shares are given to wholly-owned banks to re-capitalize them after horrible investment losses. 

With 200 trillion shares outstanding, each share is worth 50 cents.

Those who paid $10 per share, $5 per share,  how do they feel now?

OEPO continues on .........

The above chart is shares outstanding, not share value.

Why anyone would want to buy America Inc shares is beyond me.

Thu, 02/24/2011 - 21:07 | Link to Comment razorthin
razorthin's picture

I think it's also called a UUP short

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

gold is M2 long, buy x gold 6 months later u get more fiat for it.

Thu, 02/24/2011 - 20:36 | Link to Comment mynhair
mynhair's picture

This isn't M2, it's banks' excess reserves.  You know, those digital digits that have yet to morph into bonuses.

Thu, 02/24/2011 - 20:46 | Link to Comment Dr. Porkchop
Dr. Porkchop's picture

ah, yes... monetary pupa!

Thu, 02/24/2011 - 21:00 | Link to Comment mynhair
mynhair's picture

You mean poop, ah?

Thu, 02/24/2011 - 20:37 | Link to Comment Hedge Hunter
Hedge Hunter's picture

Yeah, but when QE3 comes out, you'll forget about M2... Please?

Thu, 02/24/2011 - 20:39 | Link to Comment Common_Cents22
Common_Cents22's picture

Just give me an M3.

Thu, 02/24/2011 - 21:03 | Link to Comment mynhair
mynhair's picture

Not decisive enough yet.  Need one more read.

And I need another hit.

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

mynhair: as I've been relocating global warming residue, this little earworm has been killing me:

"Have another hit... <of sweet California sunshine>"

so, your post brings back this molden oldie:

http://www.youtube.com/watch?v=IAHODyEpm2w

enjoy!

- Ned

Fri, 02/25/2011 - 01:37 | Link to Comment JW n FL
JW n FL's picture

you better get your gun Ned... and try this out for music... it will help get you in the mood to buy the right gun.

 

http://www.youtube.com/watch?v=6SNqwjdhY_Y&feature=

http://www.youtube.com/watch?v=-Aj9_8t1eQc&feature=

http://www.youtube.com/watch?v=usSLEP-PVfc&feature=

Thu, 02/24/2011 - 23:44 | Link to Comment cranky-old-geezer
cranky-old-geezer's picture

Charts like this are meaningless to me.

I prefer cost-of-gas, cost-of-bread, cost-of-silver, cost-of-gold, and similar charts.

Thu, 02/24/2011 - 20:51 | Link to Comment Milton Waddams
Milton Waddams's picture

Yet the velocity of M2 remains near multi-decade lows. It mounted a little blip higher in 2009/2010, which undoubtedly caused The Bernank's nether regions to resemble the M2 chart, but other than that it's been in the tank.

Thu, 02/24/2011 - 20:56 | Link to Comment Zero Govt
Zero Govt's picture

looks like a chart on Govt delusion levels.... nearing a top, go short Govt ETF and fuk the stops, this one's gonna blow!

Thu, 02/24/2011 - 20:57 | Link to Comment THE DORK OF CORK
THE DORK OF CORK's picture

Its only money.............................................................................................................................

Thu, 02/24/2011 - 21:08 | Link to Comment Big Corked Boots
Big Corked Boots's picture

Yeah, family is what matters.

How much silver can I sell my kids for?

Thu, 02/24/2011 - 21:16 | Link to Comment THE DORK OF CORK
THE DORK OF CORK's picture

Just feed them gruel for the rest of their childhood and you won't have to make any emotional transactions.........I think.

Oh yes you better teach them the difference between parabolic and hyperbolic curves in the classroom as it may have some relevance to their admittedly short lifespan.

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

Oh lord, you win the interwebz. Thanks for the chuckle.

Thu, 02/24/2011 - 21:04 | Link to Comment penisouraus erecti
penisouraus erecti's picture

Looks a little like silver....until today that is

Thu, 02/24/2011 - 21:05 | Link to Comment Withdrawn Sanction
Withdrawn Sanction's picture

Yet the velocity of M2 remains near multi-decade lows.

Indeed.  And that's one of several weaknesses in the Fed's "cure."  Any good monopolist knows he can control the price or the quantity of his output, but not both.  The Fed can control the quantity of money, but not the rate at which it is spent.  The Fed is "pushing on a string."

Sometimes I almost feel sorry for the BB....but then I realize the hash he's made of things and I get over it.

Thu, 02/24/2011 - 21:04 | 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 - 21:55 | Link to Comment Careless Whisper
Careless Whisper's picture

spin? bahahahaha that's for amateurs. a pro just lies.

 

Thu, 02/24/2011 - 21:08 | Link to Comment High Plains Drifter
High Plains Drifter's picture

*

Thu, 02/24/2011 - 21:08 | Link to Comment lsbumblebee
lsbumblebee's picture

Pure Laszlo.

Thu, 02/24/2011 - 21:09 | Link to Comment razorthin
razorthin's picture

Glad I've got my M44 ;>

Thu, 02/24/2011 - 21:13 | Link to Comment Thomas
Thomas's picture

That was exceedingly funny.

Thu, 02/24/2011 - 21:15 | Link to Comment Joeman34
Joeman34's picture

Ummm, not even a 5% increase over the last 12-months.  While I do think inflation as a result of expanding M2 will be an issue eventually, this a bit of 'wolf-crying' don't you think?

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

It's going up!  That must be good right? (Sarcasm off)

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

That's a gold chart.. hey give me an hard one to interpret next time.. oh you did.. and I am the sucker tax payer?

 

SCREeeeA<A<<AMMmmmmm  vaseline I beg... g....g

Thu, 02/24/2011 - 21:44 | Link to Comment slackrabbit
slackrabbit's picture

Gadafi says the young people have been drinking Nescafe which has been druged by the CIA, after looking at the M2 madness, I can now assume that Ben was the origonal test subject.

Thu, 02/24/2011 - 21:52 | Link to Comment Rodent Freikorps
Rodent Freikorps's picture

So the question is how do we get China and the EU to go to war?

Thu, 02/24/2011 - 22:25 | Link to Comment lsbumblebee
lsbumblebee's picture

Maybe if we cable China and tell them that Archduke Ferdinand was assassinated by Princeps.

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

tell 'em the winner gets to bone kim kardashian

Fri, 02/25/2011 - 03:48 | Link to Comment Rodent Freikorps
Rodent Freikorps's picture

The probem with that one is that Hu could steal her and the US wouldn't do a thing.

Has she gotten hotter recently? I remember being meh on her, but recent photos have caused a Wow. I'd hit it.

Thu, 02/24/2011 - 21:58 | Link to Comment grandcanonical
grandcanonical's picture

In all fairness that presentation is a bit deceptive.  Truncating the lower y axis to eliminate all perspective makes a 5% increase seem like a 500% increase visually. 

When you step back and take a look at the big picture it appears more like business as usual:  

http://research.stlouisfed.org/fred2/graph/?s[1][id]=M2

Thu, 02/24/2011 - 22:09 | Link to Comment 99er
99er's picture

*

Thu, 02/24/2011 - 22:16 | Link to Comment papaswamp
papaswamp's picture

Looks just like the shuttle launch...

Thu, 02/24/2011 - 22:49 | Link to Comment ATG
Thu, 02/24/2011 - 22:58 | Link to Comment darkaeye
Thu, 02/24/2011 - 23:13 | Link to Comment Clayton Bigsby
Clayton Bigsby's picture

yes

Fri, 02/25/2011 - 00:37 | Link to Comment mogul rider
mogul rider's picture

deleted cause the truth is not ready for human consumption yet.

Fri, 02/25/2011 - 00:34 | Link to Comment SparkyvonBellagio
SparkyvonBellagio's picture

1st Major Country to completely Default on its debt Wins!

 

Fri, 02/25/2011 - 00:37 | Link to Comment Mad Max
Mad Max's picture

So Russia already won this game 13 years ago?  Wow, I could hardly tell!

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

Database meltdown doubletap.

Fri, 02/25/2011 - 00:43 | Link to Comment Caveman93
Caveman93's picture

Katie bar the door!

Fri, 02/25/2011 - 01:12 | Link to Comment Creed
Creed's picture

And not enough Gold above / below ground that can support global finance.

 

 

Please....not that old tired "tell a lie often enough it becomes the truth" crap again.

 

Uh hello, raise the value? Gee, how could that be done. Hmmmm....

 

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

$3 trillion. Too bad they didn't just pass out $10,000 to everyone, you sure would have got some inflation by now!

Fri, 02/25/2011 - 01:55 | Link to Comment Grand Supercycle
Grand Supercycle's picture

Despite market intervention/QE, natural market forces can not be stopped - only delayed.

When the market does reassert control, the reaction (the overdue correction) may be even more extreme due to that delay.

http://stockmarket618.wordpress.com

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