Money Supply – Exploding Inflation

[admin]

Here is the graph of the money supply growth in the country:

http://4.bp.blogspot.com/-CPiFFEXRiHc/TgI9JsVNnvI/AAAAAAAADm0/IqGalVBzg70/s1600/MZM.png

1. The total amount of US dollars divided by the total amount of citizens in America would give us a $/American ratio.

2. If that ratio stays true, each American has the same amount of $/American and the amount of money per person is the same and purchasing power should remain the same, assuming the same amount of productivity per American.

3. In 2004 the money supply was 6,400 Billion dollars. In 2011 we are at 10,000 Billion dollars. That is a 56% increase in the money supply in 7.5 years.

4. We went from approximately 283 Million people in 2004 to about 303 Million in 2011. That is a 7% increase in population during that same time.

http://2.bp.blogspot.com/_hpxaqo7FS9c/TRKQgN91moI/AAAAAAAAC8E/IYtb9e0-wgE/s1600/maps%2B-%2Bcensus%2B-%2BUS%2Bpopulation%2Bgrowth%2Bsince%2B1790.png

5. Even if some Americans were slightly less productive because of recession, garbage TV etc, it doesn’t account for the 49% extra growth per person of the money supply. An Engineer’s salary has probably increased 10-15% and we can go look at the OPM.gov scales to prove that if you want. I bet the salaries have dropped significantly in the private sector, probably down to 2004 levels. This growth in the money supply per person is the problem and FAR exceeds wage inflation. The fed is talking about QE3 any day now which will bail out more banks and increase the money supply and dilute your dollar even more.

6. Remember the fed will continue to exponentially dilute the dollar to bail out the banks, corporations and countries they see fit and have never been audited, stealing from you constantly. It should make you irate for yourself and even more so your children because they will be left with nothing and most certainly will be exponentially poorer.

[Hobie]

And the sun keep coming up in the morning and my garden keeps growing. Let’s talk about this issue next November.

[Coronita]

[quote=Hobie]And the sun keep coming up in the morning and my garden keeps growing. Let’s talk about this issue next November.[/quote]

I’d like to know more important things… Do you think think Justin Bieber is really the father of a baby with Mariah Yeater? I’d say no…

[Mark Holmes]

[quote=Hobie]And the sun keep coming up in the morning and my garden keeps growing. Let’s talk about this issue next November.[/quote]

I would love to just ignore it, and life does go on, but being on the verge of buying a house, I care.
Are we on the verge of a hyperinflationary spiral? Would this mean that buying a house is a good, or bad decision. Any advice here is appreciated…

[markmax33]

[quote=Mark Holmes][quote=Hobie]And the sun keep coming up in the morning and my garden keeps growing. Let’s talk about this issue next November.[/quote]

I would love to just ignore it, and life does go on, but being on the verge of buying a house, I care.
Are we on the verge of a hyperinflationary spiral? Would this mean that buying a house is a good, or bad decision. Any advice here is appreciated…[/quote]

The fed’s plan is to inflate the dollar to catch up to housing prices so the banks don’t lose a ton of money from the houses on their balance sheets. We are set up for Japanese style stagflation for the next 10+ years or until the currency starts to slide dramatically. The problem is that once inflation starts, every central bank in history has failed to control it.

I personally think if you can buy a house as a home you can live in for 10+ years and it is close to the rental value, you should buy it. It will probably slide 2-5% per year until inflation catches up. It is impossible to tell when that will happen though. No good economist gives timeframes, they just predict overall trends.

[markmax33]

[quote=Hobie]And the sun keep coming up in the morning and my garden keeps growing. Let’s talk about this issue next November.[/quote]

The sun kept coming up for the Enron shareholders, the Worldcom shareholders, the Madoff investors, the Russians massive inflation of the 1990s, etc.

It is the most important issue in the country and people continue to be turn their head away when they are being robbed blindly.

[an]

[quote=flu][quote=Hobie]And the sun keep coming up in the morning and my garden keeps growing. Let’s talk about this issue next November.[/quote]

I’d like to know more important things… Do you think think Justin Bieber is really the father of a baby with Mariah Yeater? I’d say no…[/quote]
You know the baby’s mamma’s name? That’s frightening 🙂

[Hobie]

Sheath your arrows guys. Of course this is an major issue for which I do care.

But answer me this: What are each of you going to do to affect change?

My contention is that if we have a change of Administration next November the county will become more productive thus strengthening our dollar.

[Hobie]

MH:

my .02
Long term advice: have good job? buy house. cheap interest rates.

[markmax33]

[quote=Hobie]Sheath your arrows guys. Of course this is an major issue for which I do care.

But answer me this: What are each of you going to do to affect change?

My contention is that if we have a change of Administration next November the county will become more productive thus strengthening our dollar.[/quote]

You can do an ENORMOUS amount between now and next November. You must figure out if there is a candidate in the race that will help reign in and fix the fed, the mechanism that enables all of this debt, counterfeiting and malinvestment. If you determine there is such a candidate you must talk to all of your family and friends and spread the message of our debt and your solution.

One vote does absoloutely freakin nothing. We need to alert all 50 people we know and discuss it in conversations which will then alert the next 2500 poeple, so on and so on. By the time the election comes around your one vote/concern becomes 10,000 votes and really means something.

I tend to think the ONLY guy who predicted all of this NUMEROUS times needs to be elected, but it’s your call. He predicts:

9/11
Housing bubble
Financial crisis
Stealing of our liberties through patriot act
Afganastan War
Iraq war
Debt crisis

[Hobie]

Got me MM33. Fell for your RP trap. sheese. So much for a conversation.

[Anonymous]

[quote=markmax33]We are set up for Japanese style stagflation […][/quote]

Huh?

[quote]The problem is that once inflation starts, every central bank in history has failed to control it. [/quote]

You mean like the 10%+ inflation in the late 1970s/early 1980s? – Whatever happened to that?

You really should quit pretending you know something about economic history. There’s a little more to it than what you’ve learned from a handful of Ron Paul videos.

[an]

[quote=pri_dk]You mean like the 10%+ inflation in the late 1970s/early 1980s? – Whatever happened to that?[/quote]
I wonder what happen to nominal housing prices during the 70s. I could have sworn it drops less than 2-3%/year.

[Arraya]

There is no inflation. Tradition measures of money supply don’t tell the whole story. Until deflation runs it’s coarse there no threat of inflation. We are few years from that. The fed wishes it could inflate and people will be begging for it

[EconProf]

[quote=AN][quote=pri_dk]You mean like the 10%+ inflation in the late 1970s/early 1980s? – Whatever happened to that?[/quote]
I wonder what happen to nominal housing prices during the 70s. I could have sworn it drops less than 2-3%/year.[/quote]
AN is right–we had rapidly rising inflation in the 1970s, climaxing at about 13% in 1980, and tamed only by the new Fed Chairman Paul Volcker, who imposed super-tight money, put the economy through a deep recession, and conquered inflation, which later in the 1980s fell to low single digits.
But it was painful medicine. Try to calculate your monthly housing cost with a 15% mortgage.
As to housing prices during that period, they climbed along with inflation, and subsequently fell with the onset of high interest rates and recession.
Interestingly, people were still clamoring to buy even with the high interest rates, which shows the importance of inflationary expectations. If you expect inflation to go from the teens to the twenties, you try to buy a house, even with a 15% mortgage. It was a crazy time.

[Author]

Posts