June 08, 2008

Ben Bernanke and the Fed deviously stopped publishing M3 (money supply) on March 23, 2006. And now you know why.

HousingPANIC made a stink about this when it happened back in March 2006. But barely a news story was written, and not a peep from Congress was heard.

I think it's pretty obvious to most now that your government lies to you. Your government, burdened by a $53 trillion IOU, is in a position where it has to deceive you. And if you believe the government's inflation data, or social benefit promises, you are a fool.

But I think it's getting tougher and tougher to hide the truth. Now it's out there for everyone to see.

You can see it at the grocery store. You can see it at the gas station. You can see it with the sea of "foreclosure" and "for sale" signs up and down your street.

You can fool some of the people some of the time... And thanks to shadowstats for showing everyone the ugly truth, even if we're no longer supposed to see it...


traineeinvestor said...

Er...um...with all due respect I think we all knew the reason at the time publication of M3 data was stopped. Lots of people commented on the decision at the time - unfortunately not the people who are supposed to be safeguarding our interests.

It kind of begs the question of where do you put your money to protect it from the reality of high inflation?

Anonymous said...

We're into unchartered territory, and somewhat off the map as far as historical precedents are concerned

Anonymous said...

We all knew this in just buying goods. Whether it's medical services, chemicals for around the house, food, whatever, items cost more.

Pure economics will correct prices. As long as employers can cajole people into holding to 3% merit increases, demand will keep hyperinflation at bay. The major drivers of wage increases in the 60's are destroyed - the unions. Auto unions - decimated; airline unions - weakened; municiple workers - outsourcing killed them;
smaller unions - scabs crossing the line are now the illegals from Mexico. Bottom line - the Reagan dream of getting rid of industrial America cut the nuts off the American employee's power in this country and now we have lost our ability to fight for a decent standard of living.

THanks for more nothing said...

Thanks for more graphs and charts.

THe world needs more graphs and charts.

How about charting the New Depression we are in?


Peter said...

Graph doesn't look credible to me.

I can believe 10% inflation today, but inflation sure wasn't 8%+ in 2002-2004.

Andrew from Russia said...

If you put all the SGS charts together, the combination would make a Frankenstein out of the US economy - assuming that the "truth" had been hidden for years. I'm especially amazed to see the Real CPI diverging at a *constant* angle from the Official CPI - this could not be a random occurrence. The BLS must be secretly tracking the Real CPI and deciding on which component of the Official CPI to discard/downgrade so that this angle of divergence is maintained (for no apparent purpose). Or does anyone have a more plausible explanation of the maths involved?

It's a bit sad we don't have a bugaboo like SGS that would deal with Russian economic statistics. Our CPI is 15% YoY, yet there's so much talk of a mysterious "real inflation" - insidiously understated by the gov't but evident to anyone visiting a grocery store (sunflower oil prices doubling in a year, hell right it must be 100%, even if M2 grows at 33% YoY). But we have no fancy graphs to refer "nonbelievers" to! Pity, eh?

Add InflationPANIC to your list. It's worldwide and it's crazy.

Mark in San Diego said...

If the Fed raised interest rates tomorrow morning by .50, the dollar would soar, and oil would drop $20 in one day. . .we can only dream of Bernake resigning, and Volker (even at an old age) being reappointed. . .woe is us otherwise. . .

On a related topic - housing panic. . .check out


. . .the May foreclosure stats are out for SD County, and they are tripple last May. . .we must assume Orange County and much of SoCal and Nevada/Arizona look about the same. . .this ain't gonna be over for a long long time!

steely damn said...

"It kind of begs the question of where do you put your money to protect it from the reality of high inflation?"

1) Gold (in ETFs or accounts outside the U.S.)
2) Silver (in the form of junk coins or foreign ETFs)
3) Currencies of resource-rich countries (Everbank)
4) A combination of all of the above

Make popcorn, watch the mania unfold over the next 18 months. The USD will be replaced by some new script, only sheep will be holding the old stuff when that happens.

gadfly said...

Bernanke and the Fed are a bunch of robbers. They steal people's savings and wages pure and simple. And they will carry on doing it unless they are stopped. The question is, who is going to stop them?

JLarkin said...

Congress, etc. are slowly boiling the frog. Most people won't notice until it's too late, i.e. until they're laid off, foreclosed, have no money for retirement or health care, that all the tax revenues have been spent on defense, public employee benefits, social security, bailing out wall street, and so on. It's so easy to add a little complexity to these deals, so that most people don't understand and don't have the energy to figure it out.

k.w. - Southern Ca. said...

Statistics are like opinions ... everyone has them.

I don't puch much faith (and nor should anyone who can reason) in any of these graphs because most are inaccurate.

No one needs fancy graphs and charts to tell them when times are getting tough - the reality hits them harder and harder in the pocket book.

Anonymous said...

SGS charts? You've sunk to a new low.

He's just as bad as the government, just in the other direction.

bible_thumper said...

On this, I also agree with you, and the sheeple with their heads in the sand will pay dearly for their willful ignorance

Anonymous said...

JLarkin said...
Congress, etc. are slowly boiling the frog. Most people won't notice until it's too late"

Add Anon June 08, 2008 1:38 PM

Sprinkle in our lack of domestic energy production and you have the answers to today's ills.

Good Time Charlie

LibVet said...

steely damn, thanks for the note on Everbank.

I'll take a look at it.

Lost Cause said...

Conservatives Gone Wild!

Karl said...

These kinds of data are not worth worrying about, they remind me of the Cuban missile crisis...nothing you can do anything about it. Best to figure out how to survive by saving some money, get out of debt and enjoying a beer.

don oc said...

Fed will raise rates (eventually) but not enough and only to appease/fool investors. Fed must devaluate dollar to keep US debt shrinking (in real terms)

US has too much debt (lots of huge figures floating around - I don't think anyone needs convincing anymore that we're so much in debt it's not even funny).

So long term there is no question that US dollar is bound to lose probably 90% of present value - this is if you keep money in some sort of FDIC CD and get relevant interest.

The only way to protect yourself is gold and foreign currencies.

But be very careful: gold must be outside the US, and currencies should be of countries that have strong manufacturing based plus commodities (such as Aussie $ or Swiss franc). Everbank offers foreign currencies, BUT they offer virtually no interest - for example Aussie $ is about 6% (depending on time), they are paying 0.5% (they keep changing this, but you get the point).

The only thing that really helps is gold, maybe platinum. It will have ups and downs, but if you think of long term wealth preservation (meaning you don't freak out when gold dips 20% every now and then), then you're probably fine.

When housing bottoms out - then putting money in RE is also good.

But that's probably 2012-2014 IMO, and not relevant today at all.

Here is what I mean: in today's dollars, average house in Orange County is about 500K. When it goes down to 200K (in today's inflation adjusted dollars), then RE will be a good store of value. Probably 2012 or later. Might as well not even think about real estate, because if you keep money in dollars, whatever you have today will be very small in 2012, given inflation.

Oh yes Fed will raise rates. When Fed raises rates, it's only for you to have a good buying opportunity for gold and silver and platinum...

Paul E. Math said...

This article does a pretty good job of describing the flaws in the inflation readings used by our government and why.


Mammoth said...

"You can see it at the grocery store."
You got that right, Keith.

Yesterday I stashed another box full of canned food - purchased on sale - in the crawlspace under the house.

Just in case...
a) Hyperinflation makes food unaffordable, or
b) The sh!t REALLY hits the fan and the grocery shelves are empty.

I used to think that people who did this sort of thing were nuts, but now I am beginning to believe people who assume that food will always be available are the ones who are nuts.


Anonymous said...

The major drivers of wage increases in the 60's are destroyed - the unions. Auto unions - decimated; airline unions - weakened; municiple workers - outsourcing killed them

It was the unions who killed themselves and their industries, you moron. Every American industry with a major union presence is dead or losing money. The only place unions can thrive is in government, where they extort the taxpayers for their generous benefits.

gutless and lazy declares independence! said...

Al-Qaeda is not the biggest enemy of the people of the USA. The United States Federal Gov't is the biggest threat an enemy to the well being of the people of the USA.


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.—That to secure these rights, Governments are instituted among Men, deriving their just powers from the consent of the governed,—That whenever any Form of Government becomes destructive of these ends, it is the Right of the People to alter or to abolish it, and to institute new Government, laying its foundation on such principles and organizing its powers in such form, as to them shall seem most likely to effect their Safety and Happiness. Prudence, indeed, will dictate that Governments long established should not be changed for light and transient causes; and accordingly all experience hath shown, that mankind are more disposed to suffer, while evils are sufferable, than to right themselves by abolishing the forms to which they are accustomed. But when a long train of abuses and usurpations, pursuing invariably the same Object evinces a design to reduce them under absolute Despotism, it is their right, it is their duty, to throw off such Government, and to provide new Guards for their future security.—

Such has been the patient sufferance of these 50 States; and such is now the necessity which constrains them to alter their former Systems of Government. The history of the present Federal Gov't of the United States is a history of repeated injuries and usurpations, all having in direct object the establishment of an absolute Tyranny over these 50 States. To prove this, let Facts be submitted to a candid world :

United States Federal Gov't has engaged in multiple illegal, criminal foreign wars ;

United States Federal Gov't has over spent it's citizens into financial slavery to foreign powers;

United Stats Federal Gov't has engaged in criminal neglect of its national currency;

Etc. etc. etc.

Anonymous said...

Thank god Hussein Obama's going to change all that, right? Right?

bay400 said...

How much do oyu know about the Bilderberger group?


vanilla ice said...

"I can believe 10% inflation today, but inflation sure wasn't 8%+ in 2002-2004."

Are we already forgetting the greatest bubble?

We are truly


for letting the Fed steal our money, our future, the ideals of our democracy. We are destroying ourselves from the inside out.

Joe Shepherd said...

I am tempted to go with the blue curve but would like to see some detailed numbers with examples of real prices from teh past 30 years. For me, food and gas have gone through the roof. Clothing and electroncics declined or stayed about the same. Rent has been OK but I have lived in cheap areas out of bubble range. In 20 years rent has about doubled in the 3 different metros I lived in.