Category: Money Supply
The analysis published under this category are as follows.
Monday, June 23, 2008
Fed Interest Rate Cuts Have Fed Food and Fuel Inflation / Interest-Rates / Money Supply
By: Andy_Sutton
“Between a rock and a hard place” - Over the past few months, the US Federal Reserve, amid much fanfare, has lowered the benchmark interest rate from 5.25% to 2%. This loose policy was lauded by those in the financial media as being the right thing to do to prop up the economy, and banks in particular. Bernanke went from being the goat to the hero almost overnight. Rest easy folks, our Fed Chairman is on board; finally having gotten with the program. Read full article... Read full article...
Tuesday, June 17, 2008
Central Banks Clash Over Monetary Policy / Interest-Rates / Money Supply
By: Mike_Shedlock
Food and energy prices are soaring everywhere. Eurozone inflation is a record 3.7% Inflation in the eurozone has a climbed to a record level amid higher food and fuel costs, official figures show. The annual rate of inflation in the 15 state zone hit 3.7% in May, according to the Eurostat statistical office.
Read full article... Read full article...
Monday, June 09, 2008
Rising Energy Prices and the Falling US Dollar / Politics / Money Supply
By: Dr_Ron_Paul
Oil prices are on the minds of many Americans as gas hits $4 a gallon, and continues to surge. How high can prices go? How can we solve these problems? What, or who, is to blame?Read full article... Read full article...
Friday, June 06, 2008
Ben Bernanke Soaking the Rich at Harvard / Economics / Money Supply
By: John_Browne
This week I watched Fed Chairman Ben Bernanke charm the rain soaked graduating class of Harvard, my Alma Mater. As he spoke, I was reminded of an anecdote that President Franklin Roosevelt was alleged to have made during the commencement speech he gave at Harvard in 1936. Amidst a similar downpour, Roosevelt apparently said, “Well, Harvard sure knows how to soak the rich!” Fittingly, Bernanke graduated from Harvard in 1975, and his current policies are doing just that. Read full article... Read full article...
Thursday, May 29, 2008
Currencies that are Certificates of Wealth Confiscation- The Crack Up Boom, Part I / Stock-Markets / Money Supply
By: Ty_Andros
Last summer, Tedbits did a series outlining the unfolding “Crack Up Boom” written about by Ludvig Von Mises. It was well received, to say the least. Now we return to it as the “Crack Up Boom” is front and center to analyzing unfolding economic and political events. The collapse of income and living standards in the G7 (trough misstated inflation) is combining with the “something for nothing” broad social trend to push the “Crack Up Boom” into a higher gear. Malinvestments are collapsing at an increasing rate and public servants and central banks are reacting predictably. They are printing the money as they always have and always will, accelerating the arrival of the global CRACK UP BOOM. They are explicitly saying they will print the money. Read full article... Read full article...
Saturday, May 17, 2008
Rampant Money Supply Growth and Inflation / Economics / Money Supply
By: Zeal_LLC
Due to all kinds of prices rising to levels that would have seemed inconceivable only a few years ago, inflation concerns are mushrooming today. And if there is anyone still not worried about inflation yet, they soon will be. Rising food and energy costs really affect the daily lives of nearly everyone on the planet.
But inflation is woefully misunderstood, even among financially-sophisticated folks who should know better. I've heard Chairmen of the Federal Reserve, elite Wall Street analysts, and countless news-media personalities claim rising prices are inflation . This common misperception is flat-out wrong. Rising prices alone are not necessarily inflation. Inflation is purely and exclusively a monetary phenomenon.
Read full article... Read full article...
Monday, May 05, 2008
Money Supply, Inflation, Deflation and Gold / Economics / Money Supply
By: John_Lee
Money serves as a medium of exchange and store of value. Price provides an important clearing mechanism in a society. Here we are going to explore the interesting dynamics between money and price. In a free market, when the quantity of money is fixed, the fact that the price of an apple is $1 and that of a Parker pen is $2 has tremendous implications. It takes knowledge, ingredients and time to grow an apple while it involves branding, material, and capital to produce a Parker pen. Read full article... Read full article...
Sunday, April 27, 2008
Alan Greenspan: The Age of Hubris (and the long road back) / Economics / Money Supply
By: Clif_Droke
Hubris is an amazing thing. It causes those infected by it to justify actions that would normally be indefensible.
Take Alan Greenspan, for instance. He recently penned an editorial in the Financial Times claiming that under his leadership, the Federal Reserve is blameless on the property bubble. No way could the Greenspan Fed have foreseen the devastation its money policy of 2001-2006 would inflict on the housing market and the larger economy. “It wasn't my fault. Don't blame me,” claims Alan.
Read full article... Read full article...
Saturday, April 26, 2008
How the Economy Really Works- Inflation, Money Supply and the Velocity of Money / Economics / Money Supply
By: John_Mauldin
The Velocity Of Money - Is the Money Supply Growing or Not?
- P=MV
- A Slowdown in Velocity
- If You Are in a Hole, Stop Digging
- And More Write-offs to Come
The late and great Milton Friedman told us that inflation is always and everywhere a monetary phenomenon. But there is an asterisk to his equation that we need to examine, namely, the velocity of money. Sometimes a fast-growing money supply is not as inflationary as you might think. Then we will take quick looks at why the banking sector is in for more and larger rounds of write-offs, as well as note that the housing industry is in a hole but is gamely digging itself deeper. This week's letter will require you to put your thinking cap on as we travel to a mythical island to get an understanding of how the economy really works. There are a lot of charts, so the letter may again print long, but the word length is normal. And with no "but first," we jump right in.
Read full article... Read full article...
Friday, April 25, 2008
G7 Government Malfeasance Results in Huge Transfer of Wealth to Hard Asset Investors / Politics / Money Supply
By: Ty_Andros
This week we are stating some very painful truths about what is unfolding. It is a story of BETRAYAL by the people who run the United States and G7. Make no mistake, I love the United States but despise the government as it embodies the definition of immorality, incompetence, greed and hubris. Government is very competent at gathering power over others and making money for the people who run it and their contributors.
Combined with the public schools which do not teach anything anymore, the government is a testament to institutionalized malfeasance on every level. Words have become MEANINGLESS to the general public as they no longer know the history of their forefathers or the definitions of the words they speak and hear. We truly have entered the time of George Orwell's 1984 Animal Farm . It is a sorry state of affairs.
Read full article... Read full article...
Wednesday, April 23, 2008
Zen and the Art of Monetary Mayhem / Economics / Money Supply
By: Adrian_Ash
"...Just like the Bank of England , the US Fed seems to have Britney-sized 'issues' with its core stock-in-trade – money itself..."
PROFESSOR TIM BESLEY , one of the nine people chosen to set interest-rate policy at the Bank of England in London , gave a speech on Tuesday about "Inflation and the Global Economy".
Read full article... Read full article...
Monday, April 21, 2008
George Soros, Economic Illiteracy and Monetary Policy / Economics / Money Supply
By: Gerard_Jackson
Soros's main thrust against economics is that it is based on the theory that markets bring supply and demand into balance thus securing the best allocation of resources. He argues that this theory cannot apply to the real world because it is based on the model of perfect competition, on which he thinks modern economics depends.Read full article... Read full article...
Monday, March 24, 2008
Banking Institutions Present Clear and Present Danger to American Citizens / Politics / Money Supply
By: Darryl_R_Schoon
The Die is Cast- The Case Will Die - If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, (i.e., the "business cycle") the banks and corporations that will grow up around them will deprive the people of all property until their children wake-up homeless on the continent their fathers conquered. Thomas Jefferson, President of the United States 1801-1809 Read full article... Read full article...
Friday, March 21, 2008
Easter Message- Filthy Lucre and Maundy Money / Commodities / Money Supply
By: Adrian_Ash
"...If the Queen never carries any cash, what does she keep in that stout little handbag...?"
SO THE MONEY-CHANGERS didn't get thrown out of the temple this Easter Week. Instead, they got open-ended support from the money-lender of last resort, and snapped up a near-broken bank for $2 a share.
Read full article... Read full article...
Saturday, March 15, 2008
Monopoly Goes Live…with an Inflationary Twist / Economics / Money Supply
By: David_Petch
Monopoly is one of the most popular board games ever created, which was first patented in 1935 by Charles Darrow. The object of the game is to accumulate as much of the property over the course of the game until everyone else is wiped out…there are more eloquent ways to define the rules, but the above definition is the blunt version. Read full article... Read full article...
Thursday, February 28, 2008
US Money Supply Growth? Look to China / Economics / Money Supply
By: Chris_Galakoutis
Like the earmark hidden so deep inside a new appropriations bill committee report that it takes a magnifying glass to find, so too the lengths we apparently need to go in figuring out the degree of money supply growth in the US.
But is it really such a mystery?
Read full article... Read full article...
Wednesday, February 06, 2008
Opening the Mint to Gold and Silver - Last Chance to Stabalise the US Dollar! / Economics / Money Supply
By: Professor_Emeritus
A sequel to "The Double Whammy of Geopolitical Global Gold Games" - In my last article I suggested that the superpowers China, Russia, and the United States may be, without they knowing it, racing towards reopening their Mints to the monetary metals. The governments of these countries are like the heroes of Greek tragedies: they are drawn to their fate by destiny. There is no way for them to avoid Kismet, regardless of what they do. Many readers have asked me to explain what the term "opening the Mint to the unlimited coinage of gold and silver free of seigniorage charges" means. Read full article... Read full article...
Wednesday, February 06, 2008
Is Monetary Policy Destroying Our Manufacturing Base? / Economics / Money Supply
By: Gerard_Jackson
In both America and Australia the fear that the manufacturing base is shrinking to the detriment of the economy seems to garner more by the week. Australia's Labor Government has expressed the opinion that the fall in manufacturing as a proportion of GDP is of deep concern. Our so-called free market commentators mock this view, arguing that it is a historical trend that merely indicates that consumer demand has largely moved from manufacturing to services, and this is only to expected as an economy grows richer. In defence of this viewpoint they invoke the law of diminishing marginal utility. This law states that demand for a good will fall as more of it is produced. Hence the shift to services.Read full article... Read full article...
Tuesday, February 05, 2008
End of the Credit Cycle Conundrum for Commodities / Commodities / Money Supply
By: David_Petch
Inflationary cycles are always manifested towards the end with rises in commodity prices that become equivalent to a black hole where money gravitates. Increasing the supply of money is the very definition of inflation, with rising prices being a symptom. Interest rate cycles tend to last 20-30 years starting from a decline to a base, followed by peak. Central banks use interest rates as the brakes of an economy and is the primary tool used under fiat currencies. Central Banks could stop printing money, but that would lead to a deflationary collapse, which is not a desirable outcome…so inflation it is. After interest rates rise to cool things on a Cycle Degree, periods of declining interest rates occur which will often see a decline in prices.Read full article... Read full article...
Friday, February 01, 2008
United States Exporting Inflation Worldwide - From Credit to Money, Part II / Economics / Money Supply
By: Adrian_Ash
"Living in a credit era, we cannot go back to a currency era without massive upheavals..."- Robert L.Smitley, Popular Financial Delusions (1933)
WHY DON'T we just do away with all the different currencies of the world, and settle on one single money to buy, sell, invest and light our cigars with?
Read full article... Read full article...