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How The Fed Is Hiding Hyperinflation
Watcher of Worldlings ^ | 3/5/2010 | Chris van Avery

Posted on 03/05/2010 1:09:25 PM PST by SolitarySaint

And last, but certainly not least, an analyst at ZeroHedge notes how the Federal Reserve is cooking the money supply books to hide what appears to be hyperinflation:

From December 2002 until the collapse of Lehman Brothers in September 2008, the quantity of deposit currency created by the Fed averaged $11.8 billion, an amount that is relatively insignificant compared to total M1. Presently, it stands at a record high of $1,246.2 billion, which of course is highly significant.

More to the point, none of this deposit currency is captured in the traditional definition of the Ms. The quantity of dollar currency is therefore significantly underreported, which is illustrated by the following chart.

(Excerpt) Read more at watcherofworldlings.blogspot.com ...


TOPICS: Business/Economy; Politics
KEYWORDS: bush; economy; obama; politics
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I 'bout fell out of my chair when I read this. Our money could be worth half of what it was in the not-too-distant future.
1 posted on 03/05/2010 1:09:26 PM PST by SolitarySaint
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To: SolitarySaint

Well, my understanding is that if the Fed and the government get the entities they’ve paid out to to pay them back, both the debt from that, and the “temporary” great expansion of the money supply, will largely reverse this.

Of course, it also helps to suck “excess monies” out of the economy by taxing the heck out of everything. Most will again to toward “reducing debt” and the rest will go to the trash bin at the FED as it undoes its excess expansion that way.


2 posted on 03/05/2010 1:14:44 PM PST by ConservativeMind (Hypocrisy: "Animal rightists" who eat meat & pen up pets while accusing hog farmers of cruelty.)
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To: SolitarySaint

$10 a gallon gas, $20 a pack cigarettes, $10 gallons of milk. Yes, we can !

We’ve seen how delicate it was before. Let us not forget !


3 posted on 03/05/2010 1:15:15 PM PST by Celerity
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To: SolitarySaint
The Fed is attempting to stop deflation by inflation. The housing market and commercial property collapses wiped out a lot of wealth. The Fed is trying to prevent a deflationary recession by inflating the dollars, which will probably have disastrous affects.
4 posted on 03/05/2010 1:20:00 PM PST by In veno, veritas (Please identify my Ad Hominem attacks. I should be debating ideas.)
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To: ConservativeMind

While the intent of the TARP program was for the repaid bailouts to buy back debt, that’s not how Congress is actually using the recouped funds.


5 posted on 03/05/2010 1:22:53 PM PST by SolitarySaint
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To: SolitarySaint

It hasn’t been hidden from me. Food and other necessities reflect it. For example Toilet Paper has already gone up 39%and milk 33%. Just to name a couple.


6 posted on 03/05/2010 1:27:05 PM PST by greeneyes (Moderation in defense of your country is NO virtue. Let Freedom Ring.)
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To: In veno, veritas

It may be “economy neutral” to just print up a bunch of money to replace what was lost in the melt down but most of the “new money” isn’t in the hands of the folks who lost value in the melt down. So essentially what we have seen is theft. Oh, I’m sorry, “redistribution”, yeah, that is what we call it now...


7 posted on 03/05/2010 1:46:08 PM PST by wastoute (Government cannot redistribute wealth. Government can only redistribute poverty.)
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To: greeneyes

bottled water has went up about 40% where I am....a can pringles was a dollar, now a 1.50....yep that’s Obama deflation...


8 posted on 03/05/2010 1:48:43 PM PST by Freddd (CNN is down to Three Hundred Thousand viewers. But they worked for it.)
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To: greeneyes

Don’t forget the NECESSITY of ammo for which prices have skyrocketed and supplies have dwindled .


9 posted on 03/05/2010 1:50:10 PM PST by Renegade ("Bring it on while I still don't need glasses to shoot your eye out ")
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To: Freddd

Buy a Brita and filters . You’ll save on the water and it will taste better.


10 posted on 03/05/2010 1:51:14 PM PST by Renegade ("Bring it on while I still don't need glasses to shoot your eye out ")
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To: SolitarySaint

It would not surprise me, as it and worse are expected.

What we Freepers, free people and allies need do is to develop alternate forms of liquidity that can avoid government scrutiny, and are honest measure. I have pondered how to do this, and am at a loss.

Certainly there are forms of barter currencies to be found, and other forms of supposedly metal backed currency.

I was hoping that quantum storage devices would have mooted this step — because theoretically such devices once extant would immediately allow untraceable forms of currency, and be completely honest, at least on the information side.

An alternative might be a coinage of a sort that contain registered amounts of rare isotopes.

In any case it seems such a radical invention/innovation is needed NOW.

The Federal Government is at this point mostly criminal and may be very soon totally criminal.


11 posted on 03/05/2010 1:55:30 PM PST by bvw
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To: In veno, veritas

Exactly, they’re battling deflation. Deleveraging in banking and the unwinding of massive securitization also left a whole in the money supply for them to compensate for.


12 posted on 03/05/2010 1:58:36 PM PST by 9YearLurker
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To: Renegade
Love the Brita, I also got the new zero water filter, it's more expensive, but does taste better.

A little digital ppm meter comes with it(that's what sold me, being a gadget freak), I get 160ppm out of the faucet (we have basement wholehouse 10-20 micron string filter, this helps the other filters last longer), 30-40 ppm form the Brita and 0 ppm from the Zero.

Ironically, coffee still taste better with the Brita, guess you need a little crap to help pull a good brew.

13 posted on 03/05/2010 1:58:49 PM PST by norraad ("What light!">Blues Brothers)
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To: greeneyes

Pet food and lots of other stuff is going way up.


14 posted on 03/05/2010 2:02:37 PM PST by autumnraine (You can't fix stupid, but you can vote it out!)
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To: norraad

To get the point across about what is put in the local water supply, I used to do an experiment with the kids in my science class. .I would give them some local water that went through the Brita. Then I would give them the same water straight from the tap. The look on their faces was something to behold.


15 posted on 03/05/2010 2:30:09 PM PST by Renegade ("Bring it on while I still don't need glasses to shoot your eye out ")
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To: Renegade
I know, I do that too.

Folks, in general, will drink more water if it taste good to them.

We all, pretty much, need to drink more than we do(water that is).

But so often it's just not, umm, umm good, so we grab a soda (HFCS damage ,etc.) or eat something when all we really needed was a good drink (of water).

16 posted on 03/05/2010 2:37:58 PM PST by norraad ("What light!">Blues Brothers)
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To: SolitarySaint

The problem isn’t hyper-inflation. The problem is worse: deflation.

The destruction of credit. The slower speed of money.

Falling wages. Falling employment. Falling stocks. Falling home prices.


17 posted on 03/05/2010 2:40:08 PM PST by Southack (Media Bias means that Castro won't be punished for Cuban war crimes against Black Angolans in Africa)
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To: SolitarySaint

Have you kept track of prices in the grocery store? Over the last year I have noticed the prices of the things we buy going up a tad every week and “sales” tend to be when this week’s price is the same as last week’s.


18 posted on 03/05/2010 2:42:07 PM PST by arthurus ("If you don't believe in shooting abortionists, don't shoot an abortionist." -Ann C.)
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To: Southack; arthurus

I wish everyone would make up their minds! Hyperinflation... deflation...

I don’t know whether to pay off my debts or get a loan! ;-)


19 posted on 03/05/2010 2:45:16 PM PST by Pining_4_TX
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To: SolitarySaint
The Fed actually publishes something that is the close equivalent of M3. Have your air sickness bag ready Institutional Money Funds
20 posted on 03/05/2010 2:45:43 PM PST by Timocrat
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