October 20, 2007

The US Government, taking you for fools, stopped publishing the money supply figures (M3) a year and a half ago. Now we know why.


The government truly takes the governed for fools in America today.

Sadly, in most cases, they're right.

For the informed, here's M3 reconstructed. And it's ugly. REALLY ugly.

I remember the day the government stopped publishing M3 (March 23, 2006). Hardly a story to be found in the MSM. Of course, we made a big deal out of it. Looking back since then, I should have continued to make a big deal out of it. So now I will.

Because Ben Bernanke hates you.

27 comments:

Anonymous said...

After reading that very prophetic article from a year and a half ago, I think those who call you an idiot should be ashamed of themselves

Edgar said...

Because Ben Bernanke hates you.

The feeling is mutual.

Anonymous said...

I appreciate not only discussions on M3 but how we all can profit from this knowledge. Thank You for a great blog I enjoy reading.

Anonymous said...

Any idea what is driving the difference between M2 and M3?

guy n. cognito said...

.
.
MSM is a preservative that goes on crappy Chinese take-out.

Anonymous said...

Look at Lyndon LaRouche's 1995 pedagogy "The Triple Curve" collapse function.

12 years ago LaRouche showed that the rate in change in the rate of change in "financial paper, monetary emissions and the real productive economy were diverging in radically different rates of hyperbolic growth.

Financial paper and monetary emissions (m1, m2, m3) are all paid for out of real production and real production has been contracting at 2% per annum since 1966.

And right now money is growing at a hyperbolic rate to even the financial paper that they are trying bail out. The money now cost more than the financial paper they are trying to save.

Anonymous said...

Congrats Keith.

CFC is down to 15. Those October puts may pay off yet!

bob said...

Here's an interesting thought: this graph shows the growth in the money supply as it's vertical axis. This means that the actual amount of even a roughly flat line, such as M2, has been growing at 4 - 8 percent every year on the graph.

The graph I'd like to see is Discount Window loans, which are now apparently renewable forever and can use RMBS for collateral, for crying out loud.

Anonymous said...

Hey! Let's not FORGET. The Federal Reserve System is NOT part of the government! Maybe if it was public and not based on a fiat currency we would not have this problem.

Anonymous said...

Please excuse my ignorance! I wasn't an hp'r in '06 and i have no idea what this means! Can you inform me what this is all about?

the last patriot said...

I believe that banking institutions are more dangerous to our liberties than standing armies. Already they have raised up a monied aristocracy that has set the government at defiance. The issuing power should be taken from the banks and restored to the people to whom it properly belongs.
Thomas Jefferson

Anonymous said...

http://zeitgeistmovie.com/

see the third section on the banking cartel of this country.

Anonymous said...

You need to look at Base Money, not just M3.

SeattleMoose said...

"taking you for fools"....but sadly, the shoe fits....

The dumbing down of the American Education system is right on track....creating generations of meek, stupid, and easily entertained sheeple.

M3....yo, aint that the new rapper?

BAAAAAHHHHHH!!!!

Anonymous said...

Time to invest in pitchforks and torches.

Anonymous said...

SIVs are the latest talk of the financial press. Structured Investment Vehicles are a way for banks to hide bad loans off of their balance sheets, a la Enron.

SIV also stands for Simian Immunodeficiency Virus, the predecessor to HIV.

SIV was possibly transmitted to humans by people who screwed monkeys.

SIVs are commonly held by people who were screwed by monkeys like Mozilo.

Anonymous said...

MSM is a preservative that goes on crappy Chinese take-out.

You mean monosodium glutamate? Like MSG...?

Anonymous said...

When does American Idol start?

Anonymous said...

Ben Bernanke doesn't hate us, but he is a puppet of big-money banking interests, and no one should spend one second thinking he is anything other than that.

area 51 said...

I hate to sound like DOPES, but you guys harping on the absence of M3 is proof positive, you are a bunch of amateurs and conspiracy theorists.

Can you even define what it is? Do you know why it was eliminated?
Can you tell me why the F- it is needed?
Exactly, I thought so......
OK then, shut the f*ck up now....

But I did get a chuckle about the rapper reference.....ha ha....

Paul E. Math said...

Even if you take their word at face value, that they honestly believe that the effort to track M3 doesn't justify the benefits: WOW.

How could they not think M3 was important??

M3 is money! Debt is money! How could that not be important in predicting inflation??

Paul E. Math said...

M3 is:
1) physical dollars in circulation
2) demand deposits (like checking account balances)
3) savings accounts, money market accounts and CDs < $100k
4) USD in foreign bank accounts + repurchase agreements (securities sold under an agreement to be bought back by the seller)

It is item 4 that makes all the difference because effectively it's a loan (backed by securities). So now we're not keeping track of these loans to businesses by banks. This is money.

An increase in M3 means an increase in inflation. Period.

Anonymous said...

Anonymous さんは書きました...
I appreciate not only discussions on M3 but how we all can profit from this knowledge. Thank You for a great blog I enjoy reading.

October 20, 2007 1:06 PM

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Buy inflation sensitive investments: gold, silver, oil, etc... They've had a good run lately, so I would start building up gradually. The main theme should be essentially commodities, shares of companies that produce them, and hard money (i.e., gold and silver).

Anonymous said...

SeattleMoose さんは書きました...
"taking you for fools"....but sadly, the shoe fits....

The dumbing down of the American Education system is right on track....creating generations of meek, stupid, and easily entertained sheeple.

M3....yo, aint that the new rapper?

BAAAAAHHHHHH!!!!

October 20, 2007 7:31 PM

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Unfortunately, you are probably right. The clued-in are a rather small minority. Electorally insignificant.

Anonymous said...

area 51 さんは書きました...
I hate to sound like DOPES, but you guys harping on the absence of M3 is proof positive, you are a bunch of amateurs and conspiracy theorists.

Can you even define what it is? Do you know why it was eliminated?
Can you tell me why the F- it is needed?
Exactly, I thought so......
OK then, shut the f*ck up now....

But I did get a chuckle about the rapper reference.....ha ha....

October 21, 2007 1:14 AM

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Assclown 51:

We know the money supply is exploding, and inflation is raging out of control, far more than the official 2.8% annual figure concocted by the BLS. What more do we need to know?

Anonymous said...

Hey! Let's not FORGET. The Federal Reserve System is NOT part of the government! Maybe if it was public and not based on a fiat currency we would not have this problem.

Please, let's forget about this baloney.

The Federal reserve sure is part of the government. Walmart was not created by an act of Congress. The Fed was.

The Fed chief is appointed by the President and reports to the Congressional banking commitees.

The US Treasury owns any profit from Fed operations.

The Fed is exclusive transfer agent for US government securities.

The US government has its checking accounts at the Federal reserve.

The Fed is clearly, by actual function --- forget some stupid words --- part of the US government and ultimately responsible to elected officials.

However, it is good that it is not directly responsive because we need a central bank to be somewhat immune from political pressure for the good of the economy.

PS: there was a Fed even when there was some attempt to preserve gold convertibility.

Bill in AZ said...

Gary North says M3 is useless.