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Strategies & Market Trends : The coming US dollar crisis -- Ignore unavailable to you. Want to Upgrade?

To: carranza2 who wrote (37550)	4/25/2011 8:00:02 AM
From: Real Man	Read Replies (1) \| Respond to of 71475

This is the chart I was referring to. You can see that monetary base less reserves keeps increasing at pre-crisis pace, maybe a little faster, while bank reserves are piling up. All that money just sits there doing nothing. The other chart is total money - M3+credit. Flattened out. In other words, the credit bubble is totally busted. That is not to say monetization has no effect - just look at silver. -g- We are living through times similar to John Law times in France, when the government printing press and financial leverage worked together creating a credit and asset price bubble, with quite similar monetary policy following the bubble collapse. Gold sure did well back then - it was the ONLY asset that retained value. I think it was outlawed to own it, though, eventually. This is what deflation people would see as a dramatic drop in velocity of money. In reality it's a wash game - the Fed uses the printing press to wash all dirty assets. The game is sure inflationary, when it comes to price of everything not backed by debt.