M3 growth at 16%!!

[expatinireland]

It is very important that everyone understands the implications of this new report from John William's Shadow Government statistics.

Growth in M3, the broadest money supply figure, is calculated at 16% by John William's organisation that does it's own calculations for economic statistics. The FED had stopped issuing reports on M3 saying it was too expensive to calculate - that was when M3 growth was at 8%.

To see a graph of M3 growth go to this link at SGS:

http://www.shadowstats.com/alternate_data

For a better understanding of the implication's of M3 growth go to this CNN interview of John Williams from February 28:

http://money.cnn.com/video/#/video/news/2008/02/28/news.hunter.shadowstats.Feb28.cnnmoney

In this interview, John Williams forecasts the worst economic cycle since the last depression and that it will evolve into a depression and that he would not want to be the next president as the next president will be blamed for the ensuing economic chaos.

 

[OptionsTrader]

I like the graphs from:

http://www.nowandfutures.com/key_stats.html

 

[ultimaonliner]

I wish the fed would publish the m3 again. I think the fed will keep increasing the money supply even with real inflation much higher than what the core CPI suggests. Unfortunately, in the long run, we are destined to have a long period of deflation since we have so many asset bubbles caused by the huge increases in money supply. I feel bad for the average American who is unaware of all this. Unfortunately, when people realize there is a serious problem, many will mistakenly think it is the result of a free market system instead of realizing that this is because the government interfered with the free market. I forsee the public crying for more socialist and protectionist policies, like the ones Clinton and Obama are advocating.

 

[OptionsTrader]

...when people realize there is a serious problem, many will mistakenly think it is the result of a free market system instead of realizing that this is because the government interfered with the free market. I forsee the public crying for more socialist and protectionist policies, like the ones Clinton and Obama are advocating.

Indeed. Since the 2 party system is an illusion, it won't matter if it is a Bush or a Clinton that ushers in the socialism that the people request.

 

[1836]

That's pretty wild. I'm in the study of economics...

We are definitely riding for a fall.

 

[Edu]

And that's only what they tell you.

 

[Conza88]

And that's only what they tell you.

Spot on.

 

[Luft97]

And that's only what they tell you.

Just so you guys know the Government does not put out M3 numbers anymore. They are for the most part hiding that info. John Williams is trying to expose the government. I don't think he is trying to be sinister and put out false expose numbers, but I could be wrong.

"John Williams' Shadow Government Statistics" is a monthly electronic newsletter that exposes and analyzes the flaws in current U.S. government economic data and reporting, as well as in certain private-sector numbers, and provides an assessment of underlying economic conditions, net of financial-market hype .

 

[jaybone]

I like the graphs from:

http://www.nowandfutures.com/key_stats.html

Is it just me????
When I look at this chart, I see a rather dramatic drop in the M3 growth in July 2007. Of course the "credit crunch" began in earnest in August 2007.
Makes me think of 1929 when the FED sharply decreased money supply resulting in a deflationary depression.
The difference this time around can also be seen in the exponential increase since then.

For an entity that literally prints money to say that it is too expensive to calculate M3 is disingenuous to say the least. It is like saying it takes too much energy for a human being to breathe air.

My advice, if you have room in your freezer or pantry, FILL IT UP because you will not see prices as low as they are now for quite some time!

 

[tpreitzel]

It is very important that everyone understands the implications of this new report from John William's Shadow Government statistics.

Growth in M3, the broadest money supply figure, is calculated at 16% by John William's organisation that does it's own calculations for economic statistics. The FED had stopped issuing reports on M3 saying it was too expensive to calculate - that was when M3 growth was at 8%.

To see a graph of M3 growth go to this link at SGS:

http://www.shadowstats.com/alternate_data

For a better understanding of the implication's of M3 growth go to this CNN interview of John Williams from February 28:

http://money.cnn.com/video/#/video/news/2008/02/28/news.hunter.shadowstats.Feb28.cnnmoney

In this interview, John Williams forecasts the worst economic cycle since the last depression and that it will evolve into a depression and that he would not want to be the next president as the next president will be blamed for the ensuing economic chaos.

Yep, also seniors on entitlement payments are affected greatly, because the CPI is no longer indexed against the price of energy or food. The cost of energy has been skyrocketing lately due to the significant devaluation of the dollar. This change was intentionally made decades ago by our corrupt leaders, because they knew that one day food and energy costs were going to skyrocket. How did they know in advance? ;( Since pensions are indexed against the CPI, removing the most volatile components, i.e. energy and food, allows the government to rip-off the elderly and anyone else whose entitlement is indexed against the CPI.

 

[akalucas]

anybody know of a financial forum out there on the web that people get together to talk about this kind of stuff.

 

[jaybone]

www.goldismoney.info

www.kitco.com

gold bugs are very much in tune with the destrution of the dollar and how to best hedge against it.

 

[Fight-n-Mad]

mises.org has a forum, most of the discussion there is pretty advanced though, last time I looked.

It still amazes me how clueless most people are about the root causes of inflation -- even people who do this stuff for a living. For example, I read an article the other day (sorry I don't have the link right off hand), and the author was saying that it was reassuring that the Fed recognizes the inflation risks, and is using other means to inject liquidity into the system. It went on to say how they plan to pump out another $100 billion this month through the TAF, and that this was favorable to more aggressive rate cuts. It was obvious that they were thinking that it's the low interest rates themselves that debase the dollar, and as long as they use a nice clean back-door method of inflating the money supply, it wouldn't contribute to inflation. Maybe I'm missing something, but... is there really any difference?

Anyway, my take on it is that in order to keep the whole debt-based money thing going, you have to exponentially increase the money supply, and that has to be in line with an exponentially increasing GDP, and we no longer have either one of those. All you have to do is look at some of the Fed graphs at http://research.stlouisfed.org/fred2/ and you can see that there's been a steady exponential curve going from the start. But within the past few years, the curve has gotten so steep, they can't create money fast enough to keep up with it. War, easy mortgages, etc... nothing can sustain a near vertical growth rate. IOW, it's reaching it's end of life, and there's nothing that can be done to save it.

I'm hoping it keeps up long enough to send silver up to 50 bucks, and gold up to 2k, anyway.

 

[GHoeberX]

It is very important that everyone understands the implications of this new report from John William's Shadow Government statistics.

Growth in M3, the broadest money supply figure, is calculated at 16% by John William's organisation that does it's own calculations for economic statistics. The FED had stopped issuing reports on M3 saying it was too expensive to calculate - that was when M3 growth was at 8%.

To see a graph of M3 growth go to this link at SGS:

http://www.shadowstats.com/alternate_data

For a better understanding of the implication's of M3 growth go to this CNN interview of John Williams from February 28:

http://money.cnn.com/video/#/video/news/2008/02/28/news.hunter.shadowstats.Feb28.cnnmoney

In this interview, John Williams forecasts the worst economic cycle since the last depression and that it will evolve into a depression and that he would not want to be the next president as the next president will be blamed for the ensuing economic chaos.

Here's the youtube, you wanted:
http://www.youtube.com/watch?v=OmZLBD07Ba4

 

[expatinireland]

Here's the youtube, you wanted:
http://www.youtube.com/watch?v=OmZLBD07Ba4

Thanks GHoeberX!

 

[Exarel]

mises.org has a forum, most of the discussion there is pretty advanced though, last time I looked.

It still amazes me how clueless most people are about the root causes of inflation -- even people who do this stuff for a living. For example, I read an article the other day (sorry I don't have the link right off hand), and the author was saying that it was reassuring that the Fed recognizes the inflation risks, and is using other means to inject liquidity into the system. It went on to say how they plan to pump out another $100 billion this month through the TAF, and that this was favorable to more aggressive rate cuts. It was obvious that they were thinking that it's the low interest rates themselves that debase the dollar, and as long as they use a nice clean back-door method of inflating the money supply, it wouldn't contribute to inflation. Maybe I'm missing something, but... is there really any difference?

Anyway, my take on it is that in order to keep the whole debt-based money thing going, you have to exponentially increase the money supply, and that has to be in line with an exponentially increasing GDP, and we no longer have either one of those. All you have to do is look at some of the Fed graphs at http://research.stlouisfed.org/fred2/ and you can see that there's been a steady exponential curve going from the start. But within the past few years, the curve has gotten so steep, they can't create money fast enough to keep up with it. War, easy mortgages, etc... nothing can sustain a near vertical growth rate. IOW, it's reaching it's end of life, and there's nothing that can be done to save it.

I'm hoping it keeps up long enough to send silver up to 50 bucks, and gold up to 2k, anyway.

Where is their forum?

 

[Cowlesy]

John Williams is highly respected and produces a lot of terrific research

 

[Paulitician]

Where is their forum?

Click 'Network' then click 'Forums'

http://mises.com/forums/

 

[Corydoras]

When I look at this chart, I see a rather dramatic drop in the M3 growth in July 2007. Of course the "credit crunch" began in earnest in August 2007.

I think they were trying to hold the line and not increase M3. Didn't work.