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Politics : Welcome to Slider's Dugout -- Ignore unavailable to you. Want to Upgrade?


To: yoremopnhoj who wrote (5205)5/5/2007 2:19:13 PM
From: Nihontochicken  Read Replies (1) | Respond to of 50135
 
Looking at M3 charts (scroll down):

nowandfutures.com

We see the US money supply growing at 12% per year. With only a 3% or so yearly growth rate in the economy (we can ignore the lag time of putting the money into real, productive work, these disparate rates of high money supply and low economic growth have been in place for years), this implies that inflation is running at about the difference between the two, or roughly 9% a year or so. This seems to be in the ballpark of what I'm experiencing personally. Looks to me like a stagflationary spiral setting up as long as M3 balloons, unless and until the wheels come off and a deflationary economic recession/depression results. Either way, $Gold and gold miners look like a good life preserver (note how the miners did in the Great Depression of the 30s, after initially tanking with the broad market). FWIW.

NC



To: yoremopnhoj who wrote (5205)5/6/2007 5:13:54 AM
From: c.hinton  Respond to of 50135
 
an alternative to soaring interest rates is discounting the dollar.