$10 Billion Away From $10 Trillion

Tyler Durden's picture


According to the just released M2 update, the broadest publicly tracked monetary aggregate (because the Fed doesn't have enough money to keep track of M3) just hit $9,991.5 billion, a $43 billion increase from last week. In other words, this is the last week in which M2 is under $10 trillion. So enjoy it while the "complete lack of penetration" of the monetary base into broader monetary aggregates, and of the Fed's reserves so tightly locked up in bank vaults, is still only 13 digits (most of it comprising of bank deposits which of course represent no inflationary threat at all). Next week it will be a record 14 digits for the first time, and well on its way to surpassing the $15 trillion held in the deposit-free shadow banking system as the importance (and inflationary convexity) of the two is rapidly interchanged.

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Thu, 07/12/2012 - 17:40 | 2611196 q99x2
q99x2's picture


A report from the Federal Reserve Bank of New York suggests the S&P 500 would be more than 50 percent lower if it weren't for the actions of the US central bank -CNBC

I can think of better things to do with my mother's social security perscription drug money. Like pay for her f'n medication.



Thu, 07/12/2012 - 17:47 | 2611217 idea_hamster
idea_hamster's picture

From the headline, I thought this was going to be about JPMorgan's CIO losses -- oh, well ... there's always hoping!

Thu, 07/12/2012 - 19:17 | 2611387 Vampyroteuthis ...
Vampyroteuthis infernalis's picture

Where is all of that money going? Right into the accounts of the banksters who put us into this mess.

Thu, 07/12/2012 - 20:24 | 2611558 SILVERGEDDON

Hey, who gives a fuck ? It is all fake money, and fake debt. Hey, Bennie, while you are at it, print up a few hundred million for every man, woman, and child in America. THAT will stimulate the fuck out of the economy better than all that other bankster ball sucking shit you have been doing since God Knows When. Go out like a hero, celebrated in song and deed, instant immortality, instead of the metaphoric tar, feathers, and hanging you will be getting from some very pissed off people once they figure out how fucked you fucked them over. Fucker.

Thu, 07/12/2012 - 21:51 | 2611708 ndotken
ndotken's picture

All this money printing is nothing more than the Fed pumping adrenaline into the terminal patient so that the Wall St vultures can pick the last remaining pieces of flesh off the rapidly rotting carcass of the American economy.

Thu, 07/12/2012 - 22:15 | 2611758 HardAssets
HardAssets's picture

The banker/govt fascists havent grabbed the trillions in 401k and other retirement accounts yet. Gotta make the citizens dead assed broke and dependent. Trying to improve conditions on Main St ?  Hell no.

This payback's been coming to us since 1776. We will shut up and be good obedient 'subjects', or else. No new experiment in human governance allowed.

Thu, 07/12/2012 - 20:23 | 2611555 pavman
pavman's picture

From the headline, I thought this was going to be about JPMorgan's CIO losses -- oh, well ... there's always hoping!

I think he meant to say there's always hopium!

Thu, 07/12/2012 - 18:05 | 2611234 TruthInSunshine
TruthInSunshine's picture

Look at you go, Ben Bernanke! You're the little engine that could!

LOOK AT YOU GO!!!!!!!!!


Near 30% increase in M2 in 4 short years and the economy has gotten worse during that period!!!

Fractional reserve fiat birthing/MMT/Modern Money Mechanics FTMFW!!!!!!

Talk about cash money, money
Talk about cash money- dollar bills, yall

money money money money (fiat)
Thu, 07/12/2012 - 18:10 | 2611255 Global Hunter
Global Hunter's picture

That bass has some great effect on it so full and warm, think its reverb and delay.  C.R.E.A.M...cash rules everything around me...its the dollar dollar bill y'all.

My calculator is right next me but I didn't even need to switch it on to notice it nearly doubles every ten years.  Anybody with a stats, maths or engineering background tell me what happens next all I have is a digging ditches, sports and finance background.

Thu, 07/12/2012 - 18:26 | 2611281 dwayne elizando
dwayne elizando's picture

I think it has a wah wah on it also.

Thu, 07/12/2012 - 18:56 | 2611337 Global Hunter
Global Hunter's picture

Going well OT quick search of some bass blogs and the consensus seems to be a phaser/flange pedal or effect.  Wiki says wah wah, although if I remember correctly from my youth wah wah pedals and bass don't mix too well, I remember a video of Clapton in his Cream days discussing how the wah wah filtered out all the bass in his (guitar) notes.  You could very well be right and appreciate the input, could well be a bit of wah mixed with flange/phase.  Cool sound though.

Thu, 07/12/2012 - 19:58 | 2611486 Global Hunter
Global Hunter's picture

wow, awesome link I love reading about the old timers experimenting with different set ups to get pioneering sounds.  Says he was playing through a wah wah so there you have it, nice find.

Thu, 07/12/2012 - 18:32 | 2611290 oddjob
oddjob's picture

Digging ditches can be quite lucrative.

Thu, 07/12/2012 - 18:58 | 2611339 Global Hunter
Global Hunter's picture

Yes sir, I've gone full circle and have re-discovered my working class roots and proud of it, I couldn't keep selling paper at best nobody really needed for my living. Working towards being self-sufficient, learning practical skills, a lofty but noble goal I can work towards the rest of me life with my head held high!

Thu, 07/12/2012 - 19:28 | 2611412 HungrySeagull
HungrySeagull's picture

Yea, where is my CAT 936? Oh an dI need a bunch of Nerenthadals to run the shovels..

Thu, 07/12/2012 - 20:51 | 2611619 oddjob
oddjob's picture

936 is a Loader...your trench will be the size of your machine.

Thu, 07/12/2012 - 20:27 | 2611567 pavman
pavman's picture

My calculator is right next me but I didn't even need to switch it on to notice it nearly doubles every ten years. 

And here I thought it was do to my diligent, savvy investment strategy.  Thanks alot for pointing out my networth really has nothing to do with my skills and everything to do with the cheapening of the currency I kept it in!

Thu, 07/12/2012 - 17:40 | 2611200 Debtless
Debtless's picture

It doesn't matter anymore. Money is created from thin air, used to buy derivatives of things made out of thin air. It's just bullshit at this point. All of it.


Thu, 07/12/2012 - 17:42 | 2611205 Strider52
Strider52's picture

There are more dollars than there are grains of sand in all the beaches in the world.

Thu, 07/12/2012 - 20:34 | 2611588 pavman
pavman's picture

Its not very green of them to print all that cash, now is it?!  

Imagine .... a world with no money. Its easy if you try.  No crying mother earth hurting, all logging companies die!  Imagine all the people, slaving for Al Gore, he'd be very happy, but it wouldn't be a bore! oooh hoooo!

Thu, 07/12/2012 - 21:24 | 2611673 perchprism
perchprism's picture


Dood, that's a bit of an exaggeration.   There are approximately seven quintillion five quadrillion grains of sand contained in all the world's beaches.   That's 75 followed by 17 zeroes.


Thu, 07/12/2012 - 17:49 | 2611224 Waffen
Waffen's picture

At some point it will be them or us. The lemmings will only watch and cheer on the victors.

Thu, 07/12/2012 - 17:45 | 2611212 TrainWreck1
TrainWreck1's picture

9,999.9 billion bottles of beer on the wall

9,999.9 billion bottles of beer

Take one down, pass it around...

Thu, 07/12/2012 - 19:29 | 2611415 HungrySeagull
HungrySeagull's picture

One is in the Toilet, pass the bottle...

Thu, 07/12/2012 - 17:46 | 2611216 newworldorder
newworldorder's picture

So - If this were a Thelma & Louise moment - Where exactly are we?

Thu, 07/12/2012 - 18:02 | 2611244 Global Hunter
Global Hunter's picture

I saw it a long time ago, if I remember correctly they were married so we're at the point were their husbands begin to get suspicious of where they went.

Thu, 07/12/2012 - 18:08 | 2611252 sdmjake
sdmjake's picture

I think we passed that part. I'm gonna figure we picked up that sexy newcomer to the screen (Brad Pitt) and just knocked over the convenience store. They've passed the point of turning back and are in deep shit but they aren't being chased over the cliff quite yet...

Thu, 07/12/2012 - 18:17 | 2611271 Global Hunter
Global Hunter's picture

I was going to say your avatar is a sexy newcomer to me...but you've been a member for almost a year and half so maybe its me losing his mind.

Thu, 07/12/2012 - 18:28 | 2611285 Pairadimes
Pairadimes's picture

In the front seat of a classic Thunderbird convertible, moving at 32 feet per second squared.


There is time for only one more question....

Thu, 07/12/2012 - 20:03 | 2611504 Yes_Questions
Yes_Questions's picture



Mr. FED Wizard, may I have three more wishes?

Thu, 07/12/2012 - 17:47 | 2611221 JPMorgan
JPMorgan's picture


There is PLENTY more room for expansion yet.



Thu, 07/12/2012 - 17:48 | 2611222 fonzannoon
fonzannoon's picture

Anyone notice the MSM marching out expert after expert today talking gold up to 2k?

Thu, 07/12/2012 - 17:49 | 2611223 q99x2
q99x2's picture

Mattress stuffings.

Thu, 07/12/2012 - 17:51 | 2611227 trebuchet
trebuchet's picture

The ratio of M2 to Real GDP is what matters: Quant theory of money (reframed)

MV= PY=> M/Y = P/V.  M/Y ratio drift upwards can only be accommodated with inflation (P up) or Velocity of circulation slowing (V down) 

Then look at degree of bank deleveraging to get a handle on change in V.....

Thu, 07/12/2012 - 17:52 | 2611229 Vesuvius
Vesuvius's picture

Why is this M2 different than the M2 listed at:


Plus usdebtclock.org shows M2 going down?

Thu, 07/12/2012 - 17:59 | 2611236 MFL8240
MFL8240's picture


Thu, 07/12/2012 - 17:59 | 2611237 Global Hunter
Global Hunter's picture

That's quite a price to pay for the NASDAQ to rally from 1990-2000.  Terminal highs bitchez!!!

Thu, 07/12/2012 - 18:00 | 2611238 JLee2027
JLee2027's picture

Biderman is right. We need a new Constitutional Convention with the idea of not fixing the current mess, but replacing it entirely with a new Government and monetary system. Forgiveness of all debt. Maybe a Constitutional Amendment to de-power all special interests/lobbyists/etc and return control to the People.

Thu, 07/12/2012 - 18:43 | 2611304 NotApplicable
NotApplicable's picture

Given the fact that over time, any one institution is as corruptible as any other, I'd say it would be nothing more than a temporary reprieve.

Franklin's quote about "eternal vigilance" sums it up nicely.

Simply put, how are humans with a finite life-span to deal with perpetual institution? Especially if they are born into it?

Collectivism in the form of governance can never, ever succeed as advertised.

Thu, 07/12/2012 - 19:15 | 2611379 Beam Me Up Scotty
Beam Me Up Scotty's picture

How would you like to be born into a North Korean prison camp? I read about one man who escaped. It was pretty scary. A constitutional convention isn't going to yield a better product. Too many people on the gubbamint tit. We would end up with even less freedom...possibly alot less.

Fri, 07/13/2012 - 00:14 | 2611907 HardAssets
HardAssets's picture

Gotta agree with you. - - - There's enough in the current US Constitution to defend our LIberty, if it was strictly enforced. That means going back and voiding all that is un-Constitutional in govt (starting with the Federal Reserve Act). That mean restoring the power of the individual states, and the original republic that was envisioned. Who would trust lawyer/liar/politicians who got together to rewrite it all in a constitutional convention? - - - Not me, anyway.

P.S. -- I can't imagine all these postive things happening without there first being a great deal of turmoil in the country. There are aspects of his campaign which I highly disagreed with, but one legacy that Ron Paul left was many young people who learned about the US Constitution. It will take mahy more informed Americans before thiings can be turned for the better. Perhaps Ron Paul built a core of people to buld upon in the future.

Thu, 07/12/2012 - 19:11 | 2611370 PiratePawpaw
PiratePawpaw's picture

An Ammendment?!?................A band-aid on a band-aid on an infected wound?.......The system is broken. It just hasnt died yet. It wants to take us with it.

Prepare for what is next.........

And god forbid if you have a pair; help bring it on....

Ready and waiting for the tipping point.


Thu, 07/12/2012 - 19:55 | 2611475 bigkahuna
bigkahuna's picture

There is nothing wrong with the US Constitution. The problem is with the sociopath jackasses (in charge) who are not following it and the bogus law enforcement system that fails to arrest, try, and incarcerate the fuckers. You want to lose your country completely, let these sociopaths call a constitutional convention and kiss your freedom/remaining property rights goodbye.

Thu, 07/12/2012 - 18:00 | 2611239 Meesohaawnee
Meesohaawnee's picture

Remember as per the WSJ today ...Its "STIMULATIVE" (my ass) anything but. It just stimulates gramma to get desperate.  fantasic q99.. couldnt have said it any better!

Thu, 07/12/2012 - 18:00 | 2611240 Rainman
Rainman's picture

Methinx all you fiat is soppin up a tsunami of bad paper

Thu, 07/12/2012 - 19:31 | 2611418 HungrySeagull
HungrySeagull's picture

If that is the case, the accumulated weight should break through some serious supports, no matter how far down the bedrock they are.

Thu, 07/12/2012 - 20:10 | 2611523 Rainman
Rainman's picture

Don't disregard the investment drag caused by improperly priced assets. Another central bank intervention casualty.

Thu, 07/12/2012 - 18:03 | 2611245 ShankyS
ShankyS's picture

Why don't the banks just use this money to knock down the national debt by 2/3 to acceptable levels? /sarc

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