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Why You Should be Freaked Out About the Stock Market
I doubt you
will see this chart in the mainstream media any time soon... if EVER.
This is a chart of the US monetary base. In simple terms, it charts how much
money the Fed has pumped into the system (at least that it admits). So it’s a
kind of visual of the Fed hitting the PANIC button: when the monetary base
explodes higher, the Fed is FREAKING out.
You'll note that during the Financial Crisis the Fed didn't do much until the
autumn of 2008 when it pumped nearly $1 trillion into the system. Think about
that, the Fed didn’t go nuts pumping money until the stuff REALLY hit the fan.
You'll also note that there's only one other time when the monetary base went absolutely
vertical: TODAY.
Indeed, the Fed has pumped nearly $500 billion into the system since the start
of 2011. Don't even try to tell me
this is QE 2. If it was then the monetary base should have spiked in
late 2010, NOT in 2011.
No, this is the Fed FREAKING OUT about the financial system again. And it's a
freak out on par with 2008.
So if you think that all is well "behind the scenes" you're in for a
rude surprise. Something BIG is going down and it's NOT good.
And rest assured, by the time the mainstream media announces what it is, it
will already be in full swing.
Prepare Now!
Graham
Summers
PS. If
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I call it The Financial Crisis “Round Two” Survival
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Again, this
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every person in the united states should be made to count from 1 to 2400 BILLION
What a worry wart.
Buy gold, silver, palladium and USO ...sit back and relax.
Why USO is known to track poorly. If you are trying to play oil long and want futures contracts like USO just use UCO as it is 2x, it helps cover the roll loss.
Yeah, what could possibly go wrong in the futures market...
Whose talking about FUTURES?
Buy gold, silver, palladium, platinum. Those are metals, not futures. The point of ownership of a commodity is the lack of a counter party risk. If you don't care about counter party risk, buy a stock.
Alllll-righty then- I'm freaked.
I'm somewhat confused by the data, but suspect there is not much to worry about.
The chart in the blog entry appears to be for M1, which is "narrow" money, and includes only money in circulation, traveler's checks, demand deposits, and other checkable deposits consisting primarily of negotiable order of withdrawal accounts at depository institutions, and credit union share draft accounts.
M3 is the biggie, and the FED no longer reports it. It includes M1 plus savings deposits, time deposits, and institutional time deposits.
ShadowStats has a summary of estimates for M3 and the others. Draw your own conclusions. If there is to be massive inflation, it will be a result of a failure in belief in the dollar because the government is unable to balance it budget and the FED will have to keep buying USTs into the future, forever. We should know soon enough.
See SGS Money Supply Charts at http://www.shadowstats.com/charts/monetary-base-money-supply
A run on the banks?
http://jessescrossroadscafe.blogspot.com/2011/03/emergency-unlimited-coverage-extended.html
I don't get it. Why would they secretely create all this money and then publish a graph with the data? Were they hoping nobody would notice?
good question
The chart in the blog entry actually is just the monetary base, M0 if you will. From WIKI:
"The monetary base is called high-powered because an increase in the monetary base (M0) can result in a much larger increase in the supply of bank money, an effect often referred to as the money multiplier. An increase of 1 billion currency units in the monetary base will allow (and often be correlated to) an increase of several billion units of "bank money". This is often discussed in conjunction with fractional-reserve banking banking systems."
What are they going to do with all the extra high-powered fractions? We should indeed know soon enough.