This chart is designed to track M3 (total wealth), since the government stopped in 2006. This time it's the M1 money supply (circulating currency) that concerns me the most. When the government sets the prime rate at 0%, literally giving money away, this is the inevitable result. The gap between circulating currency and wealth is the amount of devaluation.
The dollar is best defined as a storehouse of wealth. When it is given away for free, then what is it really worth? Our soon to be Treasury Secretary is likely to follow the pattern. Since he "forgot" to pay his taxes (cue laugh track), and having blown a perfect opportunity to head off the bank crisis as Chairman of the New York Reserve Bank, there is little hope that he will change anything. By re-inflating the false-wealth bubble, the government is proving Lincoln's adage that some of the people can be fooled all of the time.
And before I'm done; A hearty thanks to Senator Ensign, from those of us about to lose what little wealth we have left, for rolling over and playing dead in the Senate confirmation hearings yesterday; way to go along to get along. It's enough to make me wonder if the good Senator has a hoard of silver ingots stashed under the floorboards of his mansion.
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2 comments:
Look at the bright side - that M0 line is steady....
Also look for O to go after China.
Thanks for the link. I think China holds the high cards, but this will be interesting to follow.
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