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Title: Whats the Fed Up To With the Money Supply?
Source:
Safe Haven
URL Source: http://www.safehaven.com/showarticle.cfm?id=4331&pv=1
Published: Dec 23, 2005
Author: by Robert McHugh
Post Date: 2005-12-23 13:05:23 by Horse
Keywords: Supply?, Whats, Money
Views: 317
Comments: 108
Over the past two days, December 21st - when our first Hindenburg Omen (of whatever cluster is coming) - and Thursday December 22nd, the Federal Reserve has conducted one of the largest two-day Repo injections of money into the system since back in September 2001. On Wednesday they added $18.0 billion in reserves and on Thursday they added another $20.0 billion. Is this a coincidence, coming right as we get another Hindenburg Omen? Probably not. Is something high-risk going on behind the scenes here? Let's review some facts at the Fed. On November 10th, 2005, shortly after appointing Bernanke to replace Greenbackspan, the Fed mysteriously announced with little comment and no palatable justification that they will hide M-3 effective March 2006. M-3 has been the main staple of money supply measurement and transparent disclosure since the Fed was founded back in 1913. It is the key monetary aggregate that includes Fed Repo transactions, that mechanism whereby the Fed increases reserves. 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. But there is more. The Federal Reserve currently has three vacancies within the 19 top Regional Bank and Board of Governor spots. Why? Part of ongoing wholesale resignations. The latest is from the Philly Fed. Fed President and Open Market Committee member Anthony Santomero has announced his resignation after only a brief year and a half tenure. Very unusual. Hey, Fed Presidents are treated like gods. They have enormous power, prestige, and presence. Why quit? He is far from alone. Over the past few years no less than six Federal Reserve Regional Bank Presidents have resigned. This is highly unusual. An immediate impact is that we are about to have a largely inexperienced batch of individuals conducting monetary policy in the United States. So of course, the first thing they will do is hide the key money figures. Two positions for the Board of Governors (there are 7)have been open for quite a while. Plus six of the 12 Regional Head spots have turned over during the past few years. If a substantial amount of oil transactions will suddenly be conducted in Euros instead of Dollars, this should put pressure on the Dollar as folks exchange Dollars for Euros, jeopardizing the Dollar's status as the world's reserve currency, making it more difficult to print all the dollars the Fed wants to without driving the Dollar into the ground. Iraq threatened to do what Iran has threatened to do just before we went in looking for weapons of mass disappearance. If the Dollar tanks, Treasuries might not be far behind. If Treasuries tank, kiss the Housing-driven boom goodbye. Could the Master Planners be hiding M-3 because they anticipate they may have to monetize the Federal debt, buy our own Treasury Bonds during the coming economic attack against the Dollar? That would require a ton of new fresh money creation - too much to disclose. Could it be some folks at the top of the Fed do not have the stomach to be part of what is about to go down? M-3 has a direct but lagging impact on financial markets. Look at the chart at the top of the prior page. Whenever M-3 rises, the Dow Industrials rise. Whenever M-3 is flat or declines, the Dow Industrials decline. The Dow Industrials are a bellwether for the economy. If we can monitor M-3, we can better monitor the future path of equities and the economy. It is wrong for the Fed to stop its disclosure for this very reason. Investors need to know in a free market economy, because M-3 infusion is centrally planned intervention into a free market system. Investors need to know when the Master Planners have decided to intervene. Our buy/sell signals were designed to pick up the scent of Master Planner intervention by analyzing supply and demand forces underlying the markets. So with or without a fully disclosed M-3, we will be able to continue to identify coming multi-week trends. So what about M-3 the past week? The latest figures show that on a seasonally adjusted basis, M-3 rose 27.3 billion last week, a 14.0 percent annualized clip, and is up $76 billion over the past month, a 9.8 percent growth rate. But those are the massaged numbers. For the raw figures, fasten your seat belt. Are you ready? M-3 was increased $58.7 billion last week (that does not include the huge Repo infusions noted above), a 30.0 percent annualized rate of growth. For the past two week, the Fed added $93.5 billion to the money supply, a 24.0 percent annual clip. Over the past 6 weeks it is up $192.9 billion, a 16.7 percent Banana Republic hyperinflationary pace. This is nuts, folks - unless there is an incredible risk out there we are not being told about. That is a lot of money for the Plunge Protection Team's arsenal to buy markets - stocks, bonds, currencies, whatever. This level of irresponsible money supply growth makes shorting markets hazardous, yet at the same time says markets are at huge risk of declining. Maybe M-3 growth doesn't stop the decline this time. Should be a fascinating storm in 2006. The recent rise in Gold catalogued 74 points over about a month, a 16 percent rally from precisely the day the Fed announced it would hide M-3 from taxpayers and citizens of this great nation. That is no coincidence. Gold sees hyperinflation, monetization of debt, and intervention into free markets. Gold is telling us it expects Ben Bernanke to be an inflationist.
Poster Comment: My apologies, but as usual with this computer I could not copy the chart. This article does tell us that the M3 money supply is growing at a fast clip. And as of April Fools Day 2006 the FED will no longer tell us how much money they are printing. I still believe that REPORTED INFLATION will be low during 2006,at least, until after the elections in November. But the real purpose is for Wall Street to unload their junk bonds, steal what has not yet been stolen and invest overseas so they can repatriate their funds after the dollar collapses buying America for pennies on the dollar.
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#1. To: Horse (#0)
Ping to the unUsusal Suspects Richard W.
Iraq did more than threaten. http://www.ratical.org/ratville/CAH/RRiraqWar.html "The Federal Reserve's greatest nightmare is that OPEC will switch its international transactions from a dollar standard to a euro standard. Iraq actually made this switch in Nov. 2000 (when the euro was worth around 82 cents), and has actually made off like a bandit considering the dollar's steady depreciation against the euro. (Note: the dollar declined 17% against the euro in 2002.) "The real reason the Bush administration wants a puppet government in Iraq -- or more importantly, the reason why the corporate-military-industrial network conglomerate wants a puppet government in Iraq -- is so that it will revert back to a dollar standard and stay that way." (While also hoping to veto any wider OPEC momentum towards the euro, especially from Iran -- the 2nd largest OPEC producer who is actively discussing a switch to euros for its oil exports)."
Iran has been feeling pretty frisky lately now that they have us sinking in the swamp of Iraq. Richard W.
It could very well be that Iran will go to selling oil for euros knowing full well it will trigger world war. I note that on the radio they report that the US dollar will close the year higher against most major currencies than it started the year. With the massive trade deficit we have (the largest as a percentage of gdp sustained this long in world history) the dollar should drop. and yet it rises. because it is an artificial currency, propped up artificially, given artificial strength. so that the people of the world can pay a tribute. think about it. We can buy without exporting to cover our purchases. Nobody else can. It is a system of tribute.
Of course it is. Our government acts exactly as you would exact any mafia street thug to act. Pay me protection and do what you are told, and nothing blows up. If you don't, well then maybe a train or something goes boom. Richard W.
that's the sad part - the more effectively we resist them, then the worse the 'terrorism' will get. that's one reason I don't really advocate thinking that we can win. I do advocate informing people and educating them.
Let me help with that :)
(The Gospel of Jesus Christ is the only true good news)
It seems that I pinged without the ping. Ha! Thanks. Richard W.
Old proverb goes something like this: "When your enemy is busy destroying themselves, get out of the way and let them continue doing what they're doing". We don't have to win, we just have to survive, because this system is doing a fine job of tearing itself to pieces. Our efforts are best spent in thinking about what we want to build in the vacuum created by the sudden implosion of this system. Because if we don't have a plan, I can assure you that they do, and they're ready to implement it. Therefore I suggest that we spend less time talking about how bad things are, and instead talk about what we want to build once this nightmare passes. One other thought: Blind worship of the Constitution is not the solution, the Constitution is a great but deeply flawed document, and we need to ponder these flaws and come up with something new that embodies the spirt of the Constitution while also having a chance of working and persisting in the real world.
#2. To: Horse (#0)
Iraq threatened to do what Iran has threatened to do just before we went in looking for weapons of mass disappearance.
#3. To: Sam Houston (#2)
#4. To: Arete (#3)
#5. To: Red Jones (#4)
It is a system of tribute
#6. To: Arete (#5)
Pay me protection and do what you are told, and nothing blows up
#7. To: Arete, *unUsual Suspects* (#1)
Ping to the unUsusal Suspects
#8. To: Starwind (#7)
#9. To: Red Jones (#6)
That's one reason I don't really advocate thinking that we can win. I do advocate informing people and educating them.
 | Gold and silver are real money, paper is but a promise. |
#10. To: Elliott Jackalope (#9)
well, I sure hope you're right Elliott. and I certainly don't want to get in the way of any solutions. and I will admit that it doesn't do much good to harp on the extreme negatives, and I certainly do that.
sudden implosion of this system
#11. To: Elliott Jackalope (#9)
No problem. Here is how to solve all problems very quickly: Change the interstate commerce clause by adding this: ... but these powers are limited to regulating only the movement of goods and services across state borders. That ought to fix 80% of the woes we face in terms of regulation. The rest of it is fine the way it is with one exception - limit voting to taxpayers only and also cut out anyone recieving public assistance.
Blind worship of the Constitution is not the solution, the Constitution is a great but deeply flawed document, and we need to ponder these flaws and come up with something new that embodies the spirt of the Constitution while also having a chance of working and persisting in the real world.
#12. To: Horse (#0)
Hey that makes us even, I don't tell them how much money I am printing either. LOL!
And as of April Fools Day 2006 the FED will no longer tell us how much money they are printing.
God is always good!
"It was an interesting day." - President Bush, recalling 9/11 [White House, 1/5/02]
#13. To: mirage (#11)
And this would end corporate dominace of our political system? This would end unlimited lobbying money? This would do something about our insane policies of unlimited free trade, unlimited immivasion and unlimited government power? By fixing the commerce clause? How? Sorry, we need to do a whole lot more thinking than that. One thing we need to think about is the whole idea of politicians. Is it really a good idea to have people who go into and then out of public service? Is it really a good idea to have politicians be multi-millionaires? Or would something more like a priesthood model be more appropriate, a system where one takes a vow of poverty and service, and is then guaranteed a modest living for the rest of their days, whether or not they are re-elected? And that's just one thing that needs to be re-thought, I've got lots of other issues with the Constitution, believe me. For example: It purports to be a great document for defining the government of a nation, but does absolutely nothing to acknowlege or even define what a nation is. Is a nation a polyglot assembly of every different tribe, race, color, creed and belief system shoved together into a work camp run by gangsters? Or is a nation more like an extended family, a larger reflection of the families that make it up? Because if that is the case, then we need to consider the issues of race, religion and culture. Oh, that's right, in the current system we can't even bring those issues up, can we?
| Gold and silver are real money, paper is but a promise. |
#14. To: Elliott Jackalope, mirage (#13)
I agree with Elliott on this point. and I chastise you mirage for putting faith in man and the things of man. We can't even follow the constitution as is. The constitution is just a piece of paper and nobody respects it other than in a token ceremonial way. That is fact, and if you want me to explain that to you I will. So, what good would it do to change it? In theory you have a good idea mirage. But you under-estimate the failure of man. You put your faith in man, a fatal mistake. The American nation has exposed the flaws of mankind for all to see. If evil has attacked our nation and we cannot prevail over it, then think how hopeless it is that other (lesser) nations can likewise prevail. Trying to be positive though, our ancestors used to tar and feather leaders that were known to be their enemies. That would help.
One thing we need to think about is the whole idea of politicians.
#15. To: Elliott Jackalope (#13)
No man made system of government will work very long, man is just too stupid and evil to get it right. The rise and fall of nations has been going on since the beginning of time, the USA won't be any different.
God is always good!
"It was an interesting day." - President Bush, recalling 9/11 [White House, 1/5/02]
#16. To: Elliott Jackalope (#13)
I think a nation is like a family. and when those who rule over us take away national sovereignty for not only our nations, but for others as well, then they are engaging in great evil. that is what they have done on a mass scale with the New World Order / World Trade Organization and similar institutions.
Or is a nation more like an extended family
#17. To: RickyJ (#15)
It's not really a question of "getting it right", it's a question of getting things to where they work "good enough". And I believe that can be accomplished. However, we are dealing with modern times, and modern people, and a whole new geopolitical reality, so we're going to need some new ideas. And that's what forums and debate are for, so that people can toss out ideas for others to kick around like a rag doll, and maybe something good will come of it. I'm still just barely idealistic enough to think maybe this can make a difference.
| Gold and silver are real money, paper is but a promise. |
#18. To: Arete, Starwind (#8)
The Zen of the web: "If a poster pings on a message board without actually specifying the intended recipients, will there be any discussion?" Looks like the answer is yes.
It seems that I pinged without the ping. Ha!
 | "Over it is not, until over it is." -- Yoda Berra |
#19. To: Elliott Jackalope (#9)
Agreed. However, although it is necessary to identify the flaws in the Consitution, and to develop ideas on how to fix them, such is not sufficient. The worst problem we've had hasn't been the flaws in the Constition, but rather the flaws in our society, in or schools, in our families and in our selves. No Constitution can remedy apathy, ignorance, indifference and willful disregard of the principles of right and wrong.
Therefore I suggest that we spend less time talking about how bad things are, and instead talk about what we want to build once this nightmare passes.
| "Over it is not, until over it is." -- Yoda Berra |
#20. To: sourcery (#19)
I'll agree with that .. .. even at the risk that I am in agreement with George Bush on this point when he said it was just a g. d. piece of paper. We don't follow the constitution one bit you know. The constitution says that congress is supposed to regulate the creation and management of our money supply. In practice the federal reserve (a private bank) does this, the federal reserve is never even audited, nobody knows what they do; and they just announced that they wouldn't even tell us what the money supply is any more. So, congress has completely capitulated and is not following the cosntitution on this point at all. The first ammendment is another example. Congress shall make no law restricting freedom of speech, etc. But congress does make laws specifically limiting political speech, and when the US Supreme court was asked if this was constitutional it did not even mention the First Ammendment in its ruling, it used a European court precedent to justify the restrictions on political speech that were done in laws passed by constitution. the constitution is just a g. d. piece of paper. We'd like it to be more, but it is not.
No Constitution can remedy apathy, ignorance, indifference and willful disregard of the principles of right and wrong.
#21. To: Elliott Jackalope (#13)
I've said it would fix the Constitution. For the rest of it, Got Lead?
#22. To: Red Jones (#14)
There is no hope? We should just stop trying to improve things? Never. You are to be chastened for giving up and accepting things as is. There is always room for improvement. Perhaps we should try some.
I agree with Elliott on this point. and I chastise you mirage for putting faith in man and the things of man.
#23. To: Elliott Jackalope (#17)
The Constitution, as written, is fine. The Constitution, as interpreted, rapes the original document. Changing it would mean nothing. Centralization of FedGov power has been underway for well over a century and was markedly accelerated by Franklin Roosevelt (not my hero). Negative social, political and fiscal trends have been firmly in place for decades. They are worsening. I do NOT think there is any solution within the current political system. I believe we will crash and burn and that all attempts at reform are a waste of time and energy. All just my opinion, of course ...
#24. To: Red Jones (#20)
We'd like it to be more, but it is not. And a computer program is just electrons arranged in patterns to represent ones and zeros. A Consititition is like a computer program. The program can't run correctly if the machine that executes it is flawed. A Constitution can't operate correctly if the society that animates it is dysfunctional.
the constitution is just a g. d. piece of paper.
| "Over it is not, until over it is." -- Yoda Berra |
#25. To: sourcery (#24)
A Constitution can't operate correctly if the society that animates it is dysfunctional.
(The Gospel of Jesus Christ is the only true good news)
#26. To: Starwind (#25)
Shame on you ! :P
Click to see: Making a difference in Iraq
#27. To: sourcery (#24)
(bandwidth thief!...Grrr... plagerist maybe, but bandwidth thief? ?? If ya don't want your pic's served up, don't put'm on the web - Sheesh!)
A Constitution can't operate correctly if the society that animates it is dysfunctional.
(The Gospel of Jesus Christ is the only true good news)
#28. To: mirage (#22)
you are a fool to put your faith in man or the things of man. Nothing really good ever came from a man. What men produce we build sewers and treatment plants for. if we turn our hearts to god, then our nation can be healed. and there is no other way. it is foolish to pretend that by tweaking a law or through some educational innovation or super-therapy for the people that things will improve. The United States of America was a strong effort by man to rule himself. This effort has failed, you are a fool not to see this. We must be ruled by god if we are to prosper, or even if we are to live. you are enamored with man mirage.
Perhaps we should try some.
#29. To: mirage (#22)
tell me what the 'liberal catholics' think about this - are we going to evolve? how sophistocated the liberal catholics are. The condition of man will not change until god makes it change. This will not happen until trials & tribulations, judgement and the kingdom of god built here on earth by jesus.
You are to be chastened for giving up and accepting things as is
#30. To: Starwind, sourcery (#25)
We have no government armed with power capable of contending with human passions unbridled by morality and religion. Avarice, ambition, revenge, or gallantry, would break the stongest cords of our Constitution as a whale goes through a net. Our Constitution was made only for a moral and religous people. It is wholly inadequate to the government of any other. President John Adams; Address given October 11, 1798. Works of John Adams, Volume IX, p. 229.
A Constitution can't operate correctly if the society that animates it is dysfunctional.
#31. To: Red Jones (#29)
Good question. I've got no idea what "liberal Catholics" think because there is no real way to define what one is. I would assume one might say a "liberal Catholic" is simply one who thumbs his nose at the Vatican and often times ignores the occasional utter rubbish and nonsense that comes out of them? That would be the definition I'd use. The defining mark of Catholicism, as you should know, is the use of reason. That particular characteristic was cast into stone by St. Augustine and has been a defining hallmark of that particular branch of Christianity ever since. The Vatican, to this day, continues to accept "proofs" of God's existance. It is even part of Catholic theology to "let your conscience be your guide" for in that, God speaks to you, and "no man who does something in good conscience can be held accountable in judgment for his actions." - both of those quotes can be found in the Essential Moral Handbook with Imprimatur. A typical Catholic would tell you that God gave you a brain and you're expected to use it, learn from your errors, and not make the same mistake twice. One would assume that a "liberal Catholic" would also tell you the same thing. One might also assume that God would tell you the same thing, that He gave you a brain, the capacity to use it, and expects you to do just that. So, given all that, what is the excuse for not trying to come up with a workable solution?
#32. To: mirage (#31)
If society is ignorant and its leaders corrupt, what can one man do beyond speak truth? The trend is not our friend, in this instance. Does it help to complain about the weather?
So, given all that, what is the excuse for not trying to come up with a workable solution?
#33. To: Red Jones (#28)
Man...that is one of the best posts I have ever read. Read the Book, folks...man screws things up so bad that Jesus Christ has to physically return to earth in order to straighten out the mess we've made. (I know, it's considerably more complex than that, but the bottom line is that faith in MAN will NEVER get us out of the situation(s) we find ourselves in.)
#34. To: mirage (#11)
This would be very difficult to enforce. Most taxpayers also receive government assistance in some form. Everyone 65 and over, for instance, would no longer be allowed to vote. I think the Powers That Be have chosen a more convenient method to ensure results turn out as they desire . Rather than go the unenforceable route of determining who and who is not a net taxpayer, they have decided to go down the "undetectable fraud" route of "black box voting" all the while pretending for public consumption that there are honest elections.
limit voting to taxpayers only and also cut out anyone recieving public assistance.
#35. To: mirage (#31)
on the other thread you ridiculed people who believe in the bible. you said that people who believe in the bible believe in slavery. and then you said you were a liberal catholic. you are an idiot.
I've got no idea what "liberal Catholics"
#36. To: who knows what evil (#33)
thanks for those kinds words. but I take no credit. I was just getting cranky at mirage. I better stop posting to him.
#37. To: DeaconBenjamin, sourcery, tauzero (#30)
President John Adams; Address given October 11, 1798. Works of John Adams, Volume IX, p. 229. Excellent pithy observation. Would that our nation still had such men willing and able to serve as president. Would that we'd recognize such men and support them, rather than cast them adrift in that vortex we call the election process.
We have no government armed with power capable of contending with human passions unbridled by morality and religion. Avarice, ambition, revenge, or gallantry, would break the stongest cords of our Constitution as a whale goes through a net. Our Constitution was made only for a moral and religous people. It is wholly inadequate to the government of any other.
(The Gospel of Jesus Christ is the only true good news)
#38. To: sourcery, Elliott Jackalope (#19)
You hit the nail squarely on the head. In order for the Constitution, or any other governing document, to mean anything it has to be understood, accepted and respected. Being so many generations removed from it's creation, society has no memory of why it was written the way that it was or understanding of it's importance. Much of what the Constitution represented to the people who wrote is no longer accepted by most of the country. Take a look at how it was so easily side-stepped during the depression era. The general standard of living wasn't all that extravagant before that time, but the drop was painful. Today we have a much higher level to fall from. A crash from that height will be much more unpleasant. When it happens, the soccer moms sure as hell aren't going to think returning to the Constitution will be the way to go. Nature abhors a vacuum, and those big-assed soccer moms will rally behind whoever convinces them that they can get them back their SUV's, 2500 square foot houses in the suburbs filled with abundant trinkets...no matter what the cost is to them, their neighbors or the rest of the country.
However, although it is necessary to identify the flaws in the Consitution, and to develop ideas on how to fix them, such is not sufficient. The worst problem we've had hasn't been the flaws in the Constition, but rather the flaws in our society, in or schools, in our families and in our selves. No Constitution can remedy apathy, ignorance, indifference and willful disregard of the principles of right and wrong.
"Shit, Earl....you shot Ted Hollister!"
#39. To: mirage, Red Jones, Deacon Benjamin, Phaedrus (#31)
Something from a man who knows where he stands "I am only one, but I am one. I cannot do everything, but I can do something. And because I cannot do everything, I will not refuse to do the something that I can do. What I can do, I should do. And what I should do, by the grace of God, I will do." - Edward Everett Hale
The Iraq War is an unconstitutional, unjustifiable conflict devouring innocent lives and abetting the growth of an increasingly lawless leviathan state. It must be ended -- now.
#40. To: Red Jones (#35)
Sticks and stones, my friend.
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