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Whats the Fed Up To With the Money Supply?
By: Robert McHugh on: 24.12.2005 [05:07 ] (1234 reads)
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(5642 bytes) [nc]
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Temporary offline
by hellsbells on 24.12.2005 [10:03 ]
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-- is it going to be a decline or a rise in M3?
So far, it's a rise. But in March 2006?
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by ilia25 on 24.12.2005 [10:56 ]
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Reducing the money supply while the economy is growing means falling consumer prices. And Feds will never allow that to happen.
BTW, that is why gold makes such a lousy money, because its supply can never keep up with the economic growth.
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by Tet on 24.12.2005 [17:15 ]
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Certainly the Fed has a pretty good set-up for a decline. Bernie's major was in the study of depression, I would think he knows pretty well how to create one. The question is, who wins. The Fed is trying to set-up a depression and the rest of the world would like the US to experience the inflation we've been exporting to the rest of the world for the last 35 years.
I thought this was interesting.
"The date when M-3 will start being hidden also happens to be the exact month that Iran will declare economic war against the U.S. Dollar by trading its oil in Petro-Euros on its new bourse."
No mention of the fact that China for the last month has been importing oil for something other than d0llars. Interesting though that the Iranian Oil bouse is even mentioned in the US financial services market. It's old news to us here, but I've never seen it mentioned even at a gold site before.
Looks like pretty soon would be a good time to revert to cash and wait to see who wins. Peace.
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by Tet on 24.12.2005 [17:17 ]
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The M3 chart in the graph above would tell me a decline is coming not a continued rise. Peace.
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by Looking4Light on 24.12.2005 [20:46 ]
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Dang you, what does this mean for us in the US. In March-April does this mean the price of food/gas/consumer products go up high or what ? Does this means banks will go insolvent ?
I am confused.
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by Tet on 24.12.2005 [21:38 ]
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Looks like that's what they'd like you to believe. When so many believe one thing, the set-up is very likely to be the other. Peace.
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by Ana on 24.12.2005 [21:44 ]
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Your comments are very appreciated, but often enigmatic to the simpler souls here on the site - like me. Please, tell me, what conflict you are talking about 24.12.2005 at 18.15? ('The question is, who wins'). The Fed and the rest of the world are both setting up an depression? Or are the rivals?
What will happen or what might happen?
Why revert to cash when the dollar might lose value?
Have some nice, peaceful days with your family!
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by Crack_Smoke_Republican on 25.12.2005 [01:47 ]
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of capital control in Wallstreet's hands. The speculative community on Wall-Street gets this money first where it has the most power for purchasing real goods. The consolidation of ownership of the real economy in smaller hands is effected by US speculators with this money. A lot of goods are produced but so is a lot of debt.
By Fiat, the paper/digital money is recycled by speculators in hedge funds soon after it filters to the Fed Banks-Regional Banks who then turn it over to companies who then re-invest it in Wallstreet financials. How many US companies are building new factories without financial floats? Not many. Asia builds with new fake debt too. The circle of mutual Financialization remains unbroken as long as the world does not ask the US to pay their debts with real asset-back paper securities (gold-silver-land certificates, etc.).
M3 is the perfect indicator right now showing that Bernake is banking on the entire world approaching the Fed's window for business. The silversmiths can lend to the locals as long as they never ask for the silver. In this financial world, the future is fake like the past was it's only that now more people don't believe the fakeness or pretend better that they still believe in King Dollar. You will likely get the worst of both worlds - Inflation-Depression if you are in the US. At times, one side will be favored.
As long as Asia-ME-Russia trades among itself with US dollars the funny Yiddish prank can continue. It possibly can for a long time still, but if the US citizens and the World lose faith all at the same time then you will see a massive Hyper-Stagflation in the US/UK. I get the feeling the rest of the world's leaders might continue the game out of pity for their own people now living in the US and that ultimately is why the rug has not been pulled on the Fed's artifice yet. Maybe if the US goes down so goes the rest of the world. It's better to have Asian-European Central Bankers fantasize everything is just fine than to dump the dollar. Some central bankers are starting to flinch though - particularly as they see an Anglo-Yiddish hedge fund business operating with reckless abandon in fake numbers that cannot be believed in terms of the real goods value of money. M3 indicates when the curtain on the stage opens and closes for this little Yiddish play known as the Federal Reserve.
Time will eventually come as Gold-Silver reassert themselves and real commodity goods like Oil, Steel and Copper demand higher prices for paper notes world wide. Maybe the time has come if you listen to Russell, Marc Farber, Jim Rogers and the Russian Central Bankers.
The US is hanging piece of rotten fruit when the market opens that day.
I'm just amazed that the IMF and others can diktat so much to the rest of borrowing world. It seems incredible after looking at the US profligacy and failure to cover it's own external/internal debts. But rating agencies like Moody's is owned by the NY Jews.
--CSR
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by hellsbells on 25.12.2005 [15:04 ]
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I know you're a bit of a contrarian, which is fun, but do you remember a while back, that you were predicting that interest rates in the US would fall when that expected tsunami of d0llars hit the shores? Everyone else was (sort of) predicting US interest rates would rise, perhaps to protect the USD from being dumped.
Now, where I come from, the govt controls the money supply (or at least, credit) through interest rates. If rates go up, less money is lent, so money supply goes down. If rates go down, more money is lent, and money supply goes up. At least, that's my simple understanding.
Suppose that I've presented the right model for understanding what's happening. Do you expect interest rates to go down — and — money supply also to go down?
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by Tet on 25.12.2005 [19:07 ]
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I just hope my brief comments get the brain thinking, from there hopefully we can all have questions to talk about. I certainly don't believe my views to be 100% correct and hopefully questions lead to answers for all, myself included.
"The Fed and the rest of the world are both setting up an depression? Or are the rivals?
I view the rest of the world as rivals to the Federal Reserve, both acting contary to the other. I don't recall there ever being a competitor to the Fed but that appears to be what is being set-up. Living in the US it has always been best to never bet against the Fed. The problem with this is the Fed has always allowed their actions to be viewed counter to what they are truly doing. Many people are required to lose for the Fed to be profitable, with this said when many people share the same opinion, more then likely you should be counter that opinion because that is the Fed's true intentions.
Now we actually have a counter to the Fed called the rest of the world, maybe this time following what the Fed is actually doing might not be the profitable position to hold. I don't believe this is the case yet, but that does appear to be the goal of the rest of the world.
Why revert to cash when the dollar might lose value?
If the Fed contracts the Money Supply, which to me and which seems only me seems to see this as their goal, the d0llar will climb considerably in value. Gold will drop, real estate will drop and oil will drop in d0llar terms because the d0llar will be stronger.
TWT. Peace.
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by Tet on 25.12.2005 [19:17 ]
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I don't see any reason for interest rates not to drop, now even more so. When you consider the IMF is sitting on $25 billion in new liabilities given to it by Brazil and Argentina, what do they need to turn this liability into an asset? If they can't lend it out at 10% maybe they'll need to lend it out at 2% in order for other countries to borrow. Peace.
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by ilia25 on 25.12.2005 [21:06 ]
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Do you expect interest rates to go down — and — money supply also to go down?
Apparently he does :)
The next time he will predict that revers will start to flow up because Feds — on the surface — seem to believe otherwise.
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