Dark clouds opened with the portentous rays of a Le Metropole Cafe.
Is it possible, can it really be true,
can a single newly created commentary
at GATA's Bill Murphy's Le Metropole Cafe
radiate with a brilliance of common sense
that will identify and explain a threatening
mode of exchanges between us here on this thread
to understand a system of fiat currency creation
by the usa that seems to have chaos and stupidity
woven into each and every new bill printed?
Is it time to try and safeguard ones own wealth,
and if so, how?
Or might it be best to understand what the fudge is happening,
and then place your fiat currency into another store of value
that will not become worthless or damaged, but may actually
increase in value based on whats wrong or to blame.
Once again, do not transfer any of your soon to be worthless
fiat paper currency to the Le Metropole Cafe, but go there
and take a free introduction 2 week trial membership.
You will only need to read the following, that which caused me
to produce this post.
But you will need a roadmap first, as few are like I that will read
each and every word, not speed read or skip ahead. So that you
will find those light beams to which I found truth and understanding
of what is now muddy knowledge on this thread, do the following
when you read the following.
The Kiki Table
Potpourri
Topic du Jour
Adam Hamilton, CPA, MCSE
aka Zelotes
Exploding Inflation
[First, skip the first couple pages of...]
Ludwig Heinrich Edler von Mises was born
on September 29, 1881 in the city of Lemberg,
then part of the Austro-Hung...
[Second, skip the next couple pages of same old same old...]
Today, as we watch bubblevision and the mainstream media,
it is readily apparent that the popular definition
of inflation is rising prices. This definition is at best
incomplete and at worse a dangerous deception...
[Third, now skip this next history example stuff...]
There are many fabulous examples of this phenomenon
throughout history, including Germany...World
[Finally, yes yes yes good stuff here on in... go go go]
The following graphs focus on the broad US M3 money supply.
The first graph is from 2000 to the present. The...
Even more incredible, however, the piece de resistance
of the graph is the MASSIVE spike in M3 growth that was
unleashed like a tidal wave on an unsuspecting beachside
resort in late December and early 2000...
A 20% annual growth rate in the money supply is NOT what
one would expect from the world's primary economy.
Growth like that is more in line with third world banana republics.
... the two 20%+ growth rate weeks in late December,
M3 is still growing at a dizzying 11% to 13%...
The really important question becomes. WHY?
Have Greenspan and the Fed gone mad?
What are the implications for near-future inflation in America?
If Ludwig von Mises was around to look at these graphs...
... they are a harbinger of much higher inflation
in the near future. The gobs of fiat money created
out of nothing by the wizards at the Fed have to go somewhere,
and when it sloshes into its new home...
... back to the million-dollar question. WHY?
All the mountains of new fiat capital being created
by the Fed have to find their way somewhere,
and no doubt Greenspan stays up at night sweating
and praying that the new money seeks out the US equity markets
instead of goods and services.
Odds are, however, since the US equity markets are listing badly
and foreign capital is fleeing the falling dollar, that the new money
the Fed is pumping out at fantastic rates will soon become highly
inflationary in the important goods and services of the general economy,
and financial assets will continue to crumble.
M3 is exploding.
Inflation will be exploding.
The legendary Mises would no doubt shake his head
in disgust at the inflationary policies the US Fed is...
... a desperate attempt to slow the rapidly unwinding
excesses of the Kondratieff bubble.
Greenspan and the US Fed have apparently embarked
on an inflationist course that John Law would be proud of.
Position your assets accordingly!
Adam Hamilton, CPA, MCSE
aka Zelotes
9 February 2001
[*** eXtra ExTRA eXtra ExTRA *** ]
Next week Michael Bolser and I are presenting some further
research on M3 as a possible harbinger of recessions.
Mr. Bolser is the elite analyst whose rigorous statistical study
of anomalous gold price action in New York is presented in
attorney Reginald Howe's groundbreaking lawsuit against
the bullion banks and government officials (including Alan
Greenspan) allegedly involved in suppressing the global gold price
since 1995.
The lawsuit is available for download at zealllc.com in Adobe PDF format,
and is a must-read document.
Mr. Bolser is also on Mr. Howe's Litigation Discovery Committee
for the lawsuit, as am I.
I have had the privilege of reviewing Mr. Bolser's latest
research on M3, and it is quite incredible!
We will present it in next week's essay. stay tuned!
Zeal Research by subscribing to Zeal Intelligence today!
zealllc.com
Thoughts, comments, flames, letter-bombs?
Fire away at . zelotes@zealllc.com
Mr. Hamilton,
a private investor and contrarian analyst,
publishes Zeal Intelligence,
an in-depth monthly strategic and tactical analysis
of markets, geopolitics, economics, finance,
and investing delivered from an explicitly pro-free market
and laissez faire perspective.
www.zealllc.com/samples.htm for a free sample,
Copyright 2000 - 2001 Zeal Research |
