The Inconvenient Debt - Money Supply Hockey Stick - Dollar Will Collapse, Buy Guns & Gold

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The Inconvenient Debt - Money Supply Hockey Stick - Dollar Will Collapse, Buy Guns & Gold

By: jbranstetter04

January 29, 2009

Here's your hockey stick Mr. Gore. The money supply hockey stick proves that the collapse of the dollar is very near, there are indisputable facts to prove it. But I don't need to tell you the facts, because they are indisputable. Just look at the hockey stick on this graph, and then tell me that we are not in huge trouble.

You had better go out and buy yourself a couple of wheel barrels to haul around all of your money, just like they did in Germany after their currency failed. Although today with debit cards, I guess we will be OK, maybe we don't need the wheel barrels after all.

Just invest in things that will always have value - tangible assets - things that you can't live without, or should I say things that other people can't live without, like guns, ammo water, food, camping type equipment, gin or whiskey (for medicinal purposes). That way if you end up needing something that you don't have, then you will be able to make a trade for it.

I'm glad that Glenn Beck is sounding the alarm bell, but I'm afraid that very few are listening, and of the ones who are listening, most will take no action.

Here's an excellent link to charts and graphs that show our money supply:
http://www.nowandfutures.com/key_stat...
jbranstetter04


The Federal Reserve System and public- and private-sector analysts have long monitored the growth of the money supply because of the effects that money supply growth is believed to have on real economic activity and on the price level. Over time, the Fed has tried to achieve its macroeconomic goals of price stability, sustainable economic growth, and high employment in part by influencing the size of the money supply. In the past few decades, however, the relationship between growth in the money supply and the performance of the U.S. economy has become much weaker, and emphasis on the money supply as a guide to monetary policy has waned.
Money Supply Measures
The Federal Reserve publishes weekly and monthly data on two money supply measures M1 and M2. The money supply data, which the Fed reports at 4:30 p.m. every Thursday, appear in some Friday newspapers, and they are available online as well. The Fed publishes measures of large time deposits on a quarterly basis in the Flow of Funds Accounts statistical release.
The money supply measures reflect the different degrees of liquidity—or spendability—that different types of money have. The narrowest measure, M1, is restricted to the most liquid forms of money; it consists of currency in the hands of the public; travelers checks; demand deposits, and other deposits against which checks can be written. M2 includes M1, plus savings accounts, time deposits of under $100,000, and balances in retail money market mutual funds.
The chart below shows the relative sizes of the two monetary aggregates. In April 2008, M1 was approximately $1.4 trillion, more than half of which consisted of currency. While as much as two-thirds of U.S. currency in circulation may be held outside the United States, all currency held by the public is included in the money supply because it can be spent on goods and services in the U.S. economy. M2 was approximately $7.7 trillion and largely consisted of savings deposits.

Historical Perspective
The Federal Reserve began reporting monthly data on the level of currency in circulation, demand deposits, and time deposits in the 1940s, and it introduced the aggregates M1, M2, and M3 in 1971. The original money supply measures totaled bank accounts by type of institution. The original M1, for example, consisted of currency plus demand deposits in commercial banks. Over time, however, new bank laws and financial innovations blurred the distinctions between commercial banks and thrift institutions, and the classification scheme for the money supply measures shifted to be based on liquidity and on a distinction between the accounts of retail and wholesale depositors.
The Full Employment and Balanced Growth Act of 1978, known as the Humphrey-Hawkins Act, required the Fed to set one-year target ranges for money supply growth twice a year and to report the targets to Congress. During the heyday of the monetary aggregates, in the early 1980s, analysts paid a great deal of attention to the Fed's weekly money supply reports, and especially to the reports on M1. If, for example, the Fed released a higher-than-expected M1 figure, the markets surmised that the Fed would soon try to curb money supply growth to bring it back to its target, possibly increasing short-term interest rates in the process.
http://www.newyorkfed.org/aboutthefed...

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