Ben Bernanke in his speech at Jackson Hole gave no further evidence that the Fed will be easing soon. He talked somber but that was the extent of it. This should come as no surprise since it would be unusual for Bernanke, or any Fed chairman, to launch an aggressive money printing campaign just before a presidential election.
That said, I have been reporting in the EPJ Daily Alert that money supply is beginning to climb much more rapidly in recent weeks. The simple 13 week M2 non-seasonally adjusted annualized growth is now over 9% after recording numbers around 2.5%.
It should be noted that this is occurring, not because of any new moves by Bernanke, but because it appears banks are starting to loan out some of the $1.5 trillion plus they have in excess reserves. It's only a trickle relative to how much is sitting in excess reserves, but if this continues, the recent weak numbers will reverse themselves and price inflation will not be far away. We are not there yet, but instead of looking at what Bernanke says, we should be looking at what Jamie Dimon and the other banksters are doing with their excess reserves.
You forgot to discredit Rand Paul & Peter Schiff. Two people who have done more for the liberty movement than you will in your entire life.
ReplyDeleteI like comedy in the morning. Yeah Rand Paul sure has done wonderful things. Geez, the blind love being blind.
DeleteNext....
Not to be a kiss ass, but the guy did give a speech at the Fed, telling the apparatchiks to their face that they are destroying the financial system.
DeleteAnd also, the liberty movement needs to give itself a good look in the mirror. There was a bit of a cult of personality around Paul that is unproductive. Every movement has their hangers-on and profiteers and this is no different, it will remain no different. Jesse Benton is certainly in this category and its time that Paul fanatics (and I include myself in this, I worked for the man during his 2008 NH primary campaign) come to grips with it. Something is rotten in the state of Denmark. We can't let it destroy the message or the Legacy of Ron Paul, but we have to remain honest.
DeleteYeah he really made a difference with that speech at the Fed. Really, I think they are going to raise rates on Monday as a result.
DeleteCommenters here are like little children crying when someone doesn't play by their rules. HE STARTED IT!
QE3 is coming soon. No doubt about it. The last FED minutes indicated a majority of the FED board wanted QE and helicopter Ben is signalling he wants to do QE as well.
ReplyDeleteFed is behind the SPX. If SPX is down 20%, QE whatever. Dow Jones works too.
ReplyDeleteI can't believe your first paragraph. It is absolute routine for the Fed to juice the money supply when a president is up for re-election. Volcker didn't do it for Jimmy Carter because inflation was the far, far more serious problem at that time. But it's hard to find another exception.
ReplyDeleteWell, all you have to do is look at the damn numbers. NSA M2 until the last couple of weeks was growing around 2.5%.
DeleteRobert:
ReplyDeleteThanks for your site. I have a hard time reading the FRED data where I get a good feeling to what is really going on. I can see where the velocity of money keeps falling, but have have a hard time seeing the change in M2 as per your comments. Could you share how you make M2 data make sense when using the data (charts) provide by FRED. ie what is the best unit variable to use ....billion of dollars....percent change...percent change from a year ago. Hope you understand my question. thanks again
Give shadowstats a try.
Deletehttp://www.shadowstats.com/alternate_data/money-supply-charts
Anyone know if he saw his shadow when he came out of the Hole?
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