Skip to comments.How The Fed Is Hiding Hyperinflation
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 ...
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.
$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 !
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.
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.
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...
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...
Don’t forget the NECESSITY of ammo for which prices have skyrocketed and supplies have dwindled .
Buy a Brita and filters . You’ll save on the water and it will taste better.
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.
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.
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.
Pet food and lots of other stuff is going way up.
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.
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).
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.
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.
I wish everyone would make up their minds! Hyperinflation... deflation...
I don’t know whether to pay off my debts or get a loan! ;-)
Inflation is increase in the money supply. People who don’t understand that or who are more interested in manipulation have many ad hoc and mutable definitions of inflation/deflation and mostly either do not understand economics(this includes many who make their livings as “economists”) or are pushing ideologies or just want people to think they are smart.
We are on a well in the mountains. When we do venture into a large town and they drink water that is from a fountain or a tap, the look on their faces is hysterical. They can’t believe people drink that all the time!
Actually, the more mineral filled the water is, the better the coffee. I think it has to do with the ‘crap’ clinging to the coffee grounds for longer and making a richer cup of coffee.
Yes, but the **MONEY SUPPLY** is all cash plus all credit. Here we are in the largest credit-based economy in world history, and some people still forget the entire *credit* half of the money supply when checking to see if the money supply grew (inflation) or shrank (deflation).
Hey, the cash grew! Oops, the credit shrank. Which event was larger?
“I dont know whether to pay off my debts or get a loan! ;-)”
I don’t think anyone else knows either. They just throw a dart and guess.
Not credit. Credit is gas. It is not inflation. It is not part of the money supply and counting credit just obfuscates the whole thing and makes it impossible to forecast or analyze anything based on the money supply. It is a straw man.
Nope. We have a credit-based economy. So does Japan. Japan has printed vastly more money than has the U.S., yet Japan has been stuck with deflation since 1989.
Japan has lost 21 straight years to deflation. Why? Credit destruction.
“Inflation is increase in the money supply.”
I know, but that still doesn’t answer my question...
Should I pay off my debts or take out a loan? ;-)
Might as well have a bit of fun with this - better than crying.
I don't know if it's possible, but it seems like this is what he's trying -- so we have signs of deflation and inflation simultaneously.
Debt is deflationary.
If the printing presses at the US Mint run constantly and we issue lots of greenbacks, that would tend to be inflationary, right?
And if we sell $800B in US bonds to China, that is a debt and is deflationary, right?
Printing money is inflationary.
Going into debt is deflationary.
If you have income that you know will increase in nominal value along with inflation, get a big loan. The interest payments will not rise and the loan will get smaller in real value as inflation proceeds. If you income does not increase with inflation then no loan. My daughter has a mortgage that decreased as a share of her income because her income was outpacing inflation and did not pay it off when she could have because she felt she was “making money” with it. Then she lost her job and is reduced to part time work with a slowly declining number of hours and no chance of any sort of nominal pay raise. The mortgage is a huge burden now.
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