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Chart Of The Day: Monetary Supply - It's Not A Marathon, It's A Steroid-Fueled Frenzy
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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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.
"Some of those families have been very successful, and they want their fucking rent, now pay up."
"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.
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.
When is QE4 coming?
We have, atleast, averted that with QEInfinity.
Pick a number......any number.
They'll soon be saying QE3 isn't enough, so we'll need QE3+ and QE3++.
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.
3.666
til reset.
all relative to g and s; fret not.
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.
It will be a QE MILLENIUM!!!
This is the last QE..it will go on forever now with slight modifications as the fed buys more "assets".
QE Infinity takes care of that.
We already have QE4ever. ;)
So.......go long Gold?
<Don't forget Silver as well.>
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.
the banks would prolly be giving the order for the executive order. so oh yeah they'll know.
We will be forced to go on a gold standard...by other countries..they will no longer trade in US dollars....you are seeing it now...and it will speed up as the QE´s keep coming faster....
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
End the Fed Rally
September 22, 2012
http://www.endthefed2012.com/
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.
Anybody spot riot dog! He's my favorite world traveller!
The rally is happening in 22 cities. It's a good start:
http://www.endthefed2012.com/event/
How many times have we seen this movie?
Bubble after bubble after bubble.....IT HAS TO BE ONE BUBBLE OR ANOTHER.
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.
Dude you nailed it...
This guy certainly fits your discription. lol
I'm surprised nobody here is talking about this yet
http://www.lasvegassun.com/news/2012/sep/16/gold-worth-7-million-found-house-after-nevada-man-/
The plebes focus on $7 million, not smell or recluse. Maybe they better put that old gold ring into the safe.
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!'
Long inkjet
Wow....that crap is expensive
You must be rich!
PM me @
TF Metals Report
(It's a great place for us stackers.)
Kick the can until our generation is dead, leave it to the younger folks to figure out instead.
Funny how exponents work.
Well maybe not so funny.
pods
I think you're going to need a bigger chart.
A much,much, bigger chart.
Smile you son of a bitch
There is no need for more QE thanks to ZIRP.
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.
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.
delete
Yup, it is now to infinity. We are all set. All is well. Buy crap. That will keep the economy growing.
Right - and if you dare not agree with this, you're not patriotic, and downright unAmerican.
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.
Did my stack just mysteriously get shinier?
Time to sit back and let them feast on each other.
Might want to look behind you.
Rehypothecation?
London 'whale'?
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.
Might want to read the short article along with the chart.
Uh, I did. And if you read anything else, you might want to learn something about the link between GDP growth and population growth and the rationale for growth in a monetary supply. Yes, there is a good reason we do not have a static supply of currency in a world whose population is increasing exponentially.
I think that you could create a system of non debt based money, but the control of who creates/releases the money supply (say a Sound Money Commission) and changes to the money supply should reside in an accountable Congress (I know, I know!), and violations of the mandate for stable prices in such a system should be strict and swift - stiff jail sentences for violations and corruption of the system. Basically everything that we haven't seen for the past 30, 60, 100 years...In such a system, gold would still stand as an accountable store of value.
http://economicedge.blogspot.com/2009/12/freedoms-vision-introduction.html
Debt have your drains backed up?
Oh, QE man!
...And away goes trouble down the drain...
Warning to ZH, about the 'of the day' part.
http://www.telegraph.co.uk/finance/newsbysector/retailandconsumer/9546965/Man-of-the-Match-Well-send-the-bill-later.html
Although I beleieve this is really why the west is on it's final legs, stupid moronic idiotic selling of anything not screwed down.
this nonsensical QE issue will disappear when Romney is elected. And his first order of business will be to relieve dr. bernanke of his duties and give him the private sector re-education he so desperately needs.
Ben Shalom laughs....double clutches......and shifts into QE10.
Screw you Mittens.
Bingo.
"One QE to Rule Them All" just two months before the election proved that the Fed plays favorites. This is payback for Ron Paul and Paul Ryan.
LOL!
Though Grant Williams is about as honest-Injun as they get and the chart looks about right, his chart is flawed since it does not show the time period.
OBAMNEY = No Change
Libertarian Party nominee Gary Johnson ain't perfect, but he's not with the ruling elephant-jackass party and by far the best on the ballot.
There needs to be a war on the money in the system.
If your currency is corrupt, your citizens will follow.
We are all just a part of the "Great Incredible Paper Chase". Hamsters on a Wheel of Fail.
The only question I ask is: When does "time", stop?
Large disproportions between the growth in money supply and population growth over a short term period are destructive, and it can be viewed in relation to gold. It does not follow, however, that a gold standard for currency makes sense over a long term. Here's why: money in savings would increase in value for no other reason than population growth would increase the demand for it. So, over a long term horizon, a gold standard would encourage saving over investing and stifle growth necessary to maintain a relatively even standard of living.
Wrong!
This post is sloppier than most. I think the author means $21 trillion thru 2009, not $21 billion. Also, there is no timeframe given. Given that the gold supply increases at about 1.5% per year, I assume this is a five-year chart to show an increase of 8% in overall gold supply. Therefore, it covers the timeframe 2007-2012, approximately.
the message from the chart is clear
BoJ and Gold and ECB must expand their supply at a higher rate to catch up with BoE
otherwise, goods priced in BoE pounds will become so cheap that the nations of Japan, Europa, and Gold massively import, and thereby go deeply into debt.
especially the nation of Gold. its export days are over
btw .. was at another tptb shindig over the weekend. the 'billionaire taskforce' meeting.
hadn't appreciated before just how difficult things have become for them. the issue revolves around preserving wealth through the coming .. changes.
all of them want to use the shiny yellow vehicle for storage. but all of them know that if they procure it on the open market, the price will "not remain stable", and it will reveal publicly that "certain paradigms may have to be reconsidered".
it's an interesting problem. how to acquire a thousand bricks without
- paying for them
- mining them
- anyone noticing
it's not as easy as you might think. especially when a hundred other people are doing it too. and when none of them are especially good at "taking turns" and "no .. you go first"