Thursday, February 14, 2008

M3 "Money" Supply updated their M3 "money" supply numbers on Feb. 8, 2008. Try an annualized 18% on for size. Don't you wish you had your own central bank?

"Money for noth'in, chicks for free".


M3 Annual Rate of Change

Martin Armstrong's Economic Confidence Model has a major bottom at 2011.45 (the middle of 2011). That could be an important high for silver and gold prices.

Economic Cycle

There is an ugly downside to really high silver and gold prices; deep recessions, full blown Great Depressions. These are caused by central banks creating way too many government fiat tokens. This action by central banks can greatly increase the amplitude of the business cycle.

This time around, it looks like a Great Depression for the US. A major indicator to watch is M3. The problem, which is too much debt, can not be fixed by creating more debt. That just makes the problem worse. Because of the nature of the banking system, a dollar can not be created without a dollar's worth of debt being created.

If creating more dollars fixed things, then why not create enough for us all to be millionares and be done with tinkering around and constantly attempting to fix things. Because creating extra dollars out of thin air does not create wealth. It creates more debt. Wealth is what people need. Increasing wealth increases people's standard of living. Wealth, to be created, requires work (the use of mind and hands by humans). Not the kind of work that is useless, but the kind that actually creates value.

From nowandfutures:

Gross Domestic Product - the total value of all goods and services produced in a given country. It consists of total consumer, investment and government spending, plus exports and minus imports, and including earnings from foreign sources.

Note that a switch was made in November 1991 from using GNP (Gross National Product) to GDP. A major difference is that GNP does not include earnings from foreign sources and GDP does. That factor can make the growth rate over 1% higher all by itself. Another difference is that the payments the government must make to service the national debt are missed in the GDP numbers, which again causes GDP to be higher than it actually is.

Also see hedonics, which is the biggest cause of GDP being over stated when inflation adjusted GDP figures are viewed (our 'real GDP' chart on our forecast page attempts to adjust for this)."

GDP Annual Growth

Soooooo, do not be fooled by the government reporting a "growing" economy. It is tanking right now, and your protection is gold bullion and silver bullion.

Annual Money Supply Growth updated their M3 "money" supply numbers on Feb. 9, 2008. Try an annualized 15.5% on for size.

No comments: