… and we just passed $200 billion per month.
I’ve shown the below chart before in other pieces. However, given its significance, it deserves regular review.
This is a chart of the adjusted US Monetary Base. It’s essentially a very simple means of charting how much money the US Federal Reserve is pumping into the system (on top of QE 2 which is providing another $100 billion in liquidity per month).
As you can see, starting in January 2011, the Fed left a paperweight on the “print” button. Since that time, it’s put $500 BILLION into the system. When you combine the $100 billion in liquidity provided by QE 2, we’re talking about $800-900 billion enter the financial system in 2011 alone.
There is only one period in which the Fed engaged in a similar amount of money pumps. And that was… during the depth of the 2008 Crisis from October- December 2008 (the two periods are comparable as the Fed didn’t have QE2 in 2008).
This of course leads one to ask, “what is the Fed combating now?” And it’s not just Japan (the adjusted monetary base went vertical back in January). So what is requiring $200 billion per month?
Also, we need to consider just how desperate the Fed is. QE 1 saw the Fed pumping $50 billion per month into the financial system. QE 2 saw $100 billion. Now we’re at $200 billion per month.
And people are even debating whether the Fed can tackle the Crisis? Folks, the Fed is losing control by the month (QE 1 lasted over a year). QE 2 has only been going five months and already the Fed is DOUBLING the amount of money it puts into the system!?!?
In plain terms, the Fed is losing its grip on the markets. I don’t know when the currency markets will say “enough” but when they do the collapse of the US Dollar will be rapid and violent. This is not conjecture, this is FACT: Weimar Germany’s hyperinflation exploded onto the scene .
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