Chart Of The Day: Monetary Supply - It's Not A Marathon, It's A Steroid-Fueled Frenzy

Tyler Durden's picture

Curious why the mere prospect of a gold, or gold-linked "standard" (or any other hard-asset backing for that matter) - a monetary system in which the creation of money units, i.e., literally the creation of money out of thin air, is constrained by some real-world limitation is the scariest thing to the status quo, the following chart courtesy of Grant Williams should explain it all. It shows the expansion of the world's monetary bases coupled with the expansion in the world's gold supply over a comparable period. Needless to say, expanding the money supply at 8% in several years will hardly lead to the massive inflation needed to "inflate away" the roughly $35 trillion in debt overhang by now (vs $21 billion through 2009) that is crushing the entire developed world.

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LawsofPhysics's picture

And the Germans thought they were good manufacturers of inflation.  Just wait.


Is it any coincidence that that 362% increase over the same time period tracks the increase in net worth among the world's top 1%?

I think not.  Many families have come before you and yours.  Some of those families have been very successful, and they want their fucking rent, now pay up.  Long guillotines bitchez.

Cognitive Dissonance's picture

"Some of those families have been very successful, and they want their fucking rent, now pay up."

Pay up sucker

WatchnSee's picture

"Is it any coincidence that that 362% increase over the same time period tracks the increase in net worth among the world's top 1%?"

Maybe so, but that just means they broke even in real terms on their working capital against the inflating fiat currencies.

LawsofPhysics's picture

They own real assets my friend.  If that is "breaking even", then it looks pretty good to me.  Many have private islands and private armies.  Yeah, that's my kind of "breaking even".  bring it.

Deep79's picture

When is QE4 coming?



LULZBank's picture

We have, atleast, averted that with QEInfinity.

GetZeeGold's picture



Pick a number......any number.


tallen's picture

They'll soon be saying QE3 isn't enough, so we'll need QE3+ and QE3++.

Cognitive Dissonance's picture

There will never be a QE4. Just endless upgrades of QE3 a la Windows QE3.11, QE3.666 etc.

Until that is they fire their last bullet into their own temple with $1 Trillion monthly "infusions" directly to the consumers. Look for Treasury EBT cards coming soon to a mailbox near you.

new game's picture


til reset.

all relative to g and s; fret not.

ParkAveFlasher's picture

Look for Treasury EBT cards coming soon to a mailbox near you.

Isn't that already the dollar?  Is the dollar not a debt instrument exchangeable in goods?

How many persons removed are we all from true exchange of goods?  Between the corn farmer and your bag of organic tortilla chips, for example. 

TPTB print the dollar, they disperse the dollar, the set the tables that determine your personal dole based on your estimated debt and consumption trajectories throughout life, they pay the farmers via explicit subsidy (via controlling prices on exchanges) or implicit subsidy (as in ethanol requirements in each and every gallon of gasoline, guaranteeing consumption of grain products as long as the population is dispersed and requires automobiles)...

All ledger money is dole.  It is a calculation made.  Value is lost.  All value is lost. 

They export the inflation when overflows threaten, they import inflation when the reservoirs run thin, they tax and fee any efficiencies the people find that can be possibly squirreled away to the detriment of TPTB.  They yoke profits via regulations.  They can do this via infinite money creation which empowers key agents in the seminal markets to distort and control pricing.


Dr. Engali's picture

This is the last will go on forever now with slight modifications as the fed buys more "assets".

Vince Clortho's picture

QE Infinity takes care of that.

Againstthelie's picture

We already have QE4ever. ;)

Cognitive Dissonance's picture

So.......go long Gold?

<Don't forget Silver as well.>

JPM Hater001's picture

So the question then remains, does the gold standard go back in effect instantly by executive order just as it was removed or does congress give banks a running start and debate this for 6 months?

Actually scratch that.  It doesnt matter as gold will hit 50K either way.

bigdumbnugly's picture

the banks would prolly be giving the order for the executive order.    so oh yeah they'll know.

youngman's picture

We will be forced to go on a gold other countries..they will no longer trade in US are seeing it now...and it will speed up as the QE´s keep coming faster....

bank guy in Brussels's picture

With as little gold as the US may actually have, the replacement for the US dollar standard may be the US bullet standard

Maybe why the one thing the US won't cut as America goes broke is the spending on all the hundreds of US worldwide military bases, drone planes and other tools of death

goldfish1's picture

Media blackout, voila', did not exist.

Plenty of headlines lately saying that OWS doesn't have any "focus" and they have fizzled out.

1 year after encampment began, Occupy in disarray


Occupy withers, but message was heard


FBI: Monitoring Occupy was within rules


Occupy protesters celebrate in S.F.

[...] the crowd shrank as the night wore on, dwindling to about 80 people and four dogs after 10 p.m.

Zadok's picture

Anybody spot riot dog! He's my favorite world traveller!

SeattleBruce's picture

The rally is happening in 22 cities.  It's a good start:

orangedrinkandchips's picture

How many times have we seen this movie?

Bubble after bubble after bubble.....IT HAS TO BE ONE BUBBLE OR ANOTHER.

Yellowhoard's picture

Let me summarize the Keynsians argument.

You can't eat gold.

Its a barbaric relic.

There isn't enough gold to back all of the money.

People that own gold are paranoid and crazy and stupid and not cool and smell and stuff.

Theta_Burn's picture

Dude you nailed it...

This guy certainly fits your discription. lol

I'm surprised nobody here is talking about this yet


goldfish1's picture

The plebes focus on $7 million, not smell or recluse. Maybe they better put that old gold ring into the safe.

SeattleBruce's picture

And while you're at it, get a clear will written.  Wow, I wonder when that guy started stacking.  His gold increased 6 fold in fiat terms just since 2000...


"that old gold ring" - 'I wants the precious!'

GetZeeGold's picture



Wow....that crap is expensive


You must be rich!


Mr. Fix's picture

PM me @

TF Metals Report

(It's a great place for us stackers.)

adr's picture

Kick the can until our generation is dead, leave it to the younger folks to figure out instead.

pods's picture

Funny how exponents work.

Well maybe not so funny.


Dr. Engali's picture

I think you're going to need a bigger chart.

LawsofPhysics's picture

There is no need for more QE thanks to ZIRP.

nope-1004's picture

You are only correct if you assume QE was used in the manner Ben said it would be.  I think different - I believe QE is a direct bank bailout, and nothing more.  All the big banks are 100% insolvent, period.  ZIRP doesn't repair capital ratios.


LawsofPhysics's picture

Irrelevant as the commodity complex still needs to deliver real goods people need to survive.  So long as the banks are claiming this "wealth" on their books and it continues to grow, it will affect pricing in an increasingly unstable way.

monopoly's picture

Yup, it is now to infinity. We are all set. All is well. Buy crap. That will keep the economy growing. 

SeattleBruce's picture

Right - and if you dare not agree with this, you're not patriotic, and downright unAmerican.

Bartanist's picture

If you believe one train of throught, gold has been mined on earth for over 300,000 years and some of it was taken off planet. However, the rumored remaining gold stocks of "the gods" (and the bible and most other ancient texts talk in the plural) amounts to quadrillions of dollars at today's price.

Maybe this sounds crazy, but maybe if so many of the ancient libraries were not destroyed by Rome (empire and church) or secreted away then this would be common knowledge.

Inibo E. Exibo's picture

Did my stack just mysteriously get shinier?

Cognitive Dissonance's picture

Time to sit back and let them feast on each other.


GetZeeGold's picture



Might want to look behind you.


AynRandFan's picture

I was under the impression that monetary supply growth should be compared to population growth and/or GDP growth, not some random metric such as the supply of mined gold.

Cognitive Dissonance's picture

Might want to read the short article along with the chart.