<<Don't tell any bears, please. I am serious.Let's keep it down.>>
Oops, looks like one found out!
Hate to bust your "bubble" Gene, but the monetary base is basically a meaningless measurement in this day and age. Why? For one thing, look at what it measures:
"Federal reserve deposits and vault cash held by domestic depository institutions, currency held by the public, and an adjustment for the effect in changes in reserve requirement ratios"
In other words, basically currency. Americans don't use currency any more, they use credit...and lots of it. Therefore to get a realistic idea of what Greenie (AKA "BubbleBoy") has been up to, you need a broader measurement to really understand whats been going on. M3 or MZM will suffice:
stls.frb.org
As you can see, the "Maestro" has been conducting one huge pump operation all year long, even while the markets tanked. Approximately 8% growth year to year! AMAZING! No wonder commodity prices are going through the roof (after all, you can't print oil, natural gas, or electricity, now can you?)
futures.tradingcharts.com
futures.tradingcharts.com
So with all this money sloshing around, why are we going in the tank, economy-wise? Easy, lots and lots of bad loans and poorly invested capital. Instead of investing in, say, energy infrastructure in California, Americans were "investing" in TGLO, RHAT and ICGE. Regrettably, these problems won't be solved by printing even faster. In fact, the bad loans and bankruptcies will persist, even as prices go up.
Just thought I'd clear that up. Have a nice weekend.
Regards,
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