Posted on 03/31/2011 10:51:45 AM PDT by unique
Yes, this is a vanity but it's also data from the Federal Reserve Bank of St. Louis - go to URL.
Here's a graph of US Currency volume in January 2008 to date.
In appears that the January 2008 Total volume was around $755 Billion with the current volume around $930 Billion, a variance of $175 Billion. Therefore, it appears that we not only owe $14+ Trillion (US Federal Deficit), but we've managed to deflate/dilute our currency by around 23% since January 2008. Can someone verify this assumption?
I'd be interested in posters take on this issue. It seems to me that the printing presses need to be stopped, as well as government spending with currency printed only to replace old currency - dollar for dollar.
I also wonder how currency volume in circulation is increased, e.g. is Congress involved - does the FRB simply print as much as they want to print and place it in circulation?
We seem screwed.
As a follow up to my Mercury Dime post above you should note that the ‘Dime’ has ‘appreciated’ by a factor of 27.4.
Currently the ‘Currency Component of M1’ is at about 920 or so (from the chart in the article). As an interesting experiment just divide that 920 by 27.4. You get 33.6. Now look at when the M1 number was 33.6. You get something like 1965 - when a dime was a dime.
So Mr. Bernanke, don’t tell us that inflation is rising prices. Inflation is rising quantity of money and the correlation is near perfect.
>It’s a Mercury Dime. It was once worth $.10. It is now worth $2.74. That ‘Dime’ will still buy you a nice Hershey Bar.
And *THAT* is the reason that the Fed does *NOT* want any sort of metal-backed standard: they lose their power (i.e. intentional devaluation) over money.
Why focus only on supply? What if demand for currency rose 25% over the same time frame?
A rise from $0.10 to $2.74 would be an increase of a factor of 26.4
“Inflation is always and everywhere a monetary phenomenon” - The Original Uncle Miltie Friedman.
A scary scenario from a blovel(blog novel) written by a financial guy in Florida (”JohnGaltinfla”)
Why would demand go up so much? Are people storing currency, perhaps drug cartels?
Hmmmmmmmm......Interesting take on the possibilities as we move forward or backward.
Anyway, the thought that’s gnawing at me is that Obama’s real agenda, I’ve come to believe, has America going down in flames - pure socialism will rule to get us out of a much worse scenario then we are in today. Now, I’m not a conspiracy theory type but it feels like America is in front of a snow slide that’s just about to hit all of us versus already hitting some of us. There’s been so many WTF? moments lately we seem to be in a WTF? country but still the best country in the world.
The ironic part is that mostly older citizens are attempting to look out for younger citizens, students, etc. Younger citizens seems to be in Obama camp, but don’t appear to have thought through the end game. They are the one’s that have the most to lose. Watch out what you wish for - you just may get it.
I'm not saying it did. I'm saying that you can't look at supply and demand by ignoring half the equation.
Are people storing currency, perhaps drug cartels?
Maybe. Maybe people in other countries want to hide money so their government can't nationalize their bank accounts. Maybe some Americans are doing the same.
Looks interesting. Thanks for sharing.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.