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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum
GLD 368.29+0.6%Nov 7 4:00 PM EST
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To: carranza2 who wrote (98467)2/2/2013 4:23:53 PM
From: bart13  Read Replies (1) of 217576
 
The question: "Professor, given the near-parabolic increase in money supply since 2008, why isn't the USD worth substantially less than it presently is?"

Base is only part of the answer.

Total money supply (roughly, m3 + credit + gov't debt, less double counting) has not only expanded roughly the same in other major countries or areas, but the actual total hasn't really gone up parabolically. The black line still looks parabolic, but the blue annual change rate line is below the average since 1970 or so when we exited the gold standard.



Shorter term, same chart



Roughly the same pattern on total money even when adding in net derivatives.



And the USD is actually worth significantly less than in 2008, even when measured by the doofus CPI-U. It's just not anywhere near high or hyperinflation levels. Even SGS-CPI in "only" around 10%.

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