Category: Money Supply
The analysis published under this category are as follows.
Monday, January 28, 2008
US Economic Booms and Busts and Monetary Policy History / Economics / Money Supply
By: Gerard_Jackson
The extent to which media commentators are ignorant of economic history, let alone basic economics, is genuinely staggering. We got a good look at this ignorance when the 1990s boom was compared to the 1960s boom. Then many of the same commentators started to compare the stock market boom with tulipmania or the South Sea Bubble. The crash, of course, was invariably described as an innate feature of capitalism, except if it happens under a Republican president: then it's his fault.Read full article... Read full article...
Tuesday, January 22, 2008
Retrospective: The Mysterious Case of Massive Liquidity / Stock-Markets / Money Supply
By: Mack_Frankfurter
“ Perhaps when a man has special knowledge and special powers like my own, it rather encourages him to seek a complex explanation when a simpler one is at hand. ” — Sherlock Holmes, The Adventure of the Abbey Grange (1904)
It now seems so long ago, but it is only a year since global equity markets were entrenched in a relentless march upward, spurred by the “world growth story” and a wave of global liquidity. U.S. and European stock markets gained double-digit returns in 2006 while the emerging markets did even better. Alongside the upward trajectory came a remarkable decline in volatility with the VIX, known as the “fear gauge,” falling to 13-year lows in November and December that same year.
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Saturday, January 19, 2008
Bush Stimulus Plan - $500 Tax Rebate for Everyone! / Economics / Money Supply
By: Brent_Harmes
I couldn't believe it. I was sitting in the airport the other day waiting on my flight and CNN mentioned that the government is seriously considering helping our economy make it through this credit crunch by giving each of us a check for $500!
Here is a quote from The Associated Press about it.
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Saturday, January 12, 2008
Gold Price Rise a Consquence of Inflationary Global Expansion Money Supply / Economics / Money Supply
By: Peter_Schiff
Holding onto its "all is well" bias like a terrified cowboy on an enraged bull, Wall Street has managed to convince itself, and much of the world, that inflation is a non-issue. When confronted with facts to the contrary, their rationalizations come fast and thick. Nowhere is this spin more pronounced than in their dismissal of the surging price of gold as a relevant indicator.Read full article... Read full article...
Wednesday, December 26, 2007
Contracting Credit Cycle and Monetary Debasement During 2008 Equals Commodities Super Cycle / Commodities / Money Supply
By: Captain_Hook
The Need For Speed – Part Deux : The credit crunch continues to worsen , where very soon attempting to paper over all problems with more derivatives and bailouts will no longer work, and authorities will be compelled to increase currency (just another derivative) debasement rates to higher thresholds around the world. Correspondingly then, and as was the case in the early to mid-80's to stimulate the US economy, expect Money At Zero Maturity (MZM) growth rates to top 40-percent in coming days as authorities are forced to monetize increasing bank failures and facilitate ‘price stability'. The technical underpinnings associated with this condition can be viewed here in Figure 6 , where if history is a good guide, year-over-year growth should continue to accelerate higher in coming days. Read full article... Read full article...
Friday, December 21, 2007
The Battle Between Inflation and Deflation - Money Supply to Decide Outcome / Economics / Money Supply
By: Peter_Schiff
Among those rational enough to perceive the looming economic downturn, a heated debate has arisen that centers on whether the slowdown will be accompanied by inflation or deflation.
Those in the deflation camp believe that money supply will collapse as a natural consequence of the implosion of the biggest credit bubble in U.S. history. As loans go bad, assets, which collateralize these loans, will be sold at fire sale prices to satisfy creditors. It is also argued that a recession will reduce consumer discretionary spending, causing retailers to slash prices to move their bloated inventories. This is the way the situation played out in the 1930's and this is how many expect it to happen today.
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Monday, December 17, 2007
US Fed Inflationary Money Printing Intervention Does More Harm than Good / Economics / Money Supply
By: Michael_Pento
Crying All the Way to the Bank - The Fed has angered many and pleased few in its ongoing effort to unclog the credit markets. They have lowered the Fed Funds rate a total of 100bps to 4.25% in the last three meetings and have also taken the Discount rate down to 4.75%. Most market pundits clamor for the Fed to ease more aggressively in an attempt to bolster flagging market returns. Meantime, an increasingly rare strategist argues for a stable currency and low inflation. In light of the recent actions by our Central Bank, I thought it important to lay out the reasons why it would be better for our economy if the Fed allowed the free market to work.Read full article... Read full article...
Wednesday, December 12, 2007
Worlds Central Banks to the Rescue with $110 billions / Interest-Rates / Money Supply
By: Nadeem_Walayat
The Worlds Top 5 Central Banks in an unprecedented move joined forces at 2pm GMT to make $100 billions available to the retail banking market. The important point is that unlike previous liquidity boosts, the monies will be made available at favourable market rates which are much lower than the interbank rate.Read full article... Read full article...
Wednesday, December 12, 2007
Merrill Lynch and Morgan Stanley Expect US Recession During 2008 / Interest-Rates / Money Supply
By: Gold_Investments
GoldGold was up $4.00 to $811.60 per ounce in New York yesterday and silver was up 3 cents to $14.67 per ounce. Subsequent to the Federal Reserve's 25 basis point interest rate cut gold fell in the less liquid New York Access market and erased the earlier gains. In volatile trade gold then fell as low as $796 but then rallied strongly and again erased the short term losses and in Asian and early European trading gold has been strong was at $807.50 at the today's London AM Fix. Gold was largely flat in pounds sterling and euros and at the London AM Fix gold was trading at £394.77 GBP (up from yesterday's London AM Fix at £393.79) and €549.21 EUR (up from yesterday's London AM Fix at €549.15). http://www.lbma.org.uk/statisti cs_current.htm Read full article... Read full article...
Tuesday, December 04, 2007
Importance of the Gold Standard - US Economy: Deficits, Foreign Debt and Monetary Policy / Economics / Money Supply
By: Gerard_Jackson
It seems that it was only yesterday that economic commentators were almost hysterical over the US economy's trade deficit. Added to that was the view that the country's growing foreign debt would bring the economy down. Now that the deficit is shrinking fewer people are drawing attention to it, though they still harp on about the foreign debtRead full article... Read full article...
Wednesday, November 28, 2007
United States Diseased Monetary Bloodstream / Economics / Money Supply
By: Professor_Emeritus
Invited Address Delivered on November 18, 2007, in Torrance, California, to a Joint Session of the Positive Deviant Network and the Flight to Genius movement:
Dear Fellow Deviants, Dear Fellow Travelers standing by for the next flight to Genius, Ladies and Gentlemen: Synergy Be With You!
One of the truly spectacular sights is from the airplane as it makes its approaches to Los Angeles International Airport at dusk. Down below is the illuminated “live” map of Los Angeles with its winding and intersecting freeways, with an endless flow of white headlights and an opposite flow of red tail-lights. It reminds me of the human bloodstream with its flow of white and red blood corpuscles. As I was flying in the other day I could not help but contemplate that possibly just a handful in a million people down there may realize what a fatal year 2007 has been, as the rest are completely oblivious to the great dangers awaiting the world on this Thanksgiving Day.
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Monday, November 26, 2007
Market Fundamentalism and the Tyranny of US Monetary System / Economics / Money Supply
By: Richard_C_Cook
Recommendations for Reform of the US Monetary System
We hold these truths to be self-evident, that all men are created equal,
that they are endowed by their Creator with certain unalienable rights,
that among these are life, liberty and the pursuit of happiness.
1. What We Must Do Today
“Life, liberty, and the pursuit of happiness” are, or should be, the fruits of democracy. But the political democracy defined by the Declaration of Independence and the Constitution has not been achieved because economic democracy has not been achieved. The attainment of real economic democracy is the next task for the American people.
Tuesday, October 23, 2007
Economy Swamped by Confusion as Money Supply Goes Wild / Economics / Money Supply
By: Gerard_Jackson
What passes for economic commentary these days is enough to drive one to drink. Let's start with Mike Steketee, another of Rupert Murdoch's resident lefties. He tells us that Nicholas Gruen — an economist — “found that cutting taxes for low and middle-income earners generated the largest response in increased employment”. This is just another version of the consumption-drives-the-economy fallacy. Read full article... Read full article...
Tuesday, October 16, 2007
Consumer Spending Spree Creates Bad Vibes for the Economy / Economics / Money Supply
By: Gerard_Jackson
We can divide economic commentators in to two basic groups: The first one consists of what we can loosely term free market commentators while the second one consists of interventionists. Alan Wood and Terry McCrann are representative of group one. The sad thing is that neither group offers any serious economic commentary. Right now Australia is undergoing a boom, consumer spending is rocketing — as is the trade deficit — inflation is about 3 per cent and the unemployment figures have been slashed.Read full article... Read full article...
Friday, October 05, 2007
Hologram Tam & the Great Global Banking Money Supply Swindle / Stock-Markets / Money Supply
By: Adrian_Ash
"...If forgery were a question of quantity as well as quality, the world's entire private banking system would be queuing up for porridge tomorrow morning..."
THOMAS McANEA was a drunk, an ex-con freed on a technicality, and a failed businessman with barely "two pennies" to rub together, according to the Scottish police.
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Tuesday, September 25, 2007
C.H. Douglas: Founder of Modern Monetary Reform Movement / Economics / Money Supply
By: Richard_C_Cook
C.H. Douglas (1879-1952), a Scottish-born engineer, who worked for a number of American and British companies in the early years of the twentieth century, was the founder of the modern monetary reform movement. My own interest in monetary reform dates from discovering Douglas's ideas through a reprint of A.R. Orage's articles about them in Orage's publication The New Age dating from the 1920s.Read full article... Read full article...
Monday, September 24, 2007
Central Banks Playing The Paper Game Bring the World Close to Hyper Inflation / Economics / Money Supply
By: Captain_Hook
Apparently we have arrived – arrived at the point where any and all problems encountered must now be papered over – and we've gone global in this regard. You might want to listen to Jim Sinclair's talk on why the derivatives problem will necessarily lead us into hyperinflation. I'm not sure I agree with all his assertions, however the primary message is undeniable, and the market action is backing such claims, so they must be taken seriously. In this regard, let's take a quick look at money supply now to ensure our thinking is on the right track. Wouldn't you know it, in addition to monetization efforts taking off (growing at a 14% annualized rate), which of course we already knew about, growth rates in visible measures including both Money At Zero Maturity (MZM) and M2 are also going vertical, which gold is correctly responding to then. Here, these are not quite what would be considered hyperinflationary levels, but they are damn close --- close enough to talk about mild hyperinflation. Read full article... Read full article...
Sunday, September 09, 2007
The Federal Reserve: Putting out a fire with Gasoline / Stock-Markets / Money Supply
By: Bob_Kirtley
The Federal Reserves answer to the problem caused by too much money in the system is to print more money. Further dilution of the once almighty dollar continues with it dropping two cents over the last three weeks for a loss of 2.4%.
On the other hand gold has gained $40.00 over the same period for a gain of 6%.
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Friday, August 31, 2007
US Monetary Data is Not Painting a Pretty Picture / Economics / Money Supply
By: David_Urban
Well, MZM and M2 have begun to take on a parabolic looks as the compounded annual rate of change increased to 9.7 and 6.4%, respectively, from a year ago. MZM growth is giving me the chills just looking at the chart. This does not look good from an anti-inflation perspective. You can say that the helicopter drops have started. Take it all in now because when the party ends you will not want to be around for the cleanup.Read full article... Read full article...
Wednesday, August 29, 2007
The Result of 35 Years of a Paper Global Monetary System / Economics / Money Supply
By: Paul_L_Kasriel
I’ll skip the thousand words – the picture says it all.Read full article... Read full article...