WHAT'S THE FED UP TO WITH THE MONEY SUPPLY?(Chart didn't copy over)

Financial Sense Online ^ | 26 December 2005 | Robert McHugh

[Havoc]

Regulation was applied as a muzzle on unethical business practices in large measure. if companies could act in an ethical manner, much of what you call "regulation" wouldn't exist. You're like a criminal complaining your behavior would be better if you could have a color tv in your cell..

[Dont_Tread_On_Me_888]

If you go to the author's website, here is what you see:

To subscribe now and take advantage of our Christmas Special, 39 percent discounted annual subscription rate of $179, click on the Subscribe/Renew Today! button.

This guy is nuts. Like many others who publish crap like "Ten Stocks That Will Soar in 2006" and "How To Avoid The Coming Crash" and crap like that, he is out--and they are out--to bilk the gullible.

[Toddsterpatriot]

Bernanke is the guy who said, ... "that we can fight deflation with the printing press. We can drop $100.00 bills out of helicopters."

Actually, Bernanke was quoting Milton Friedman. So, I'm curious, how would you fight deflation?

[One_who_hopes_to_know]

Accompanying Chart:

[jsmith48]

Businessmen are criminals? Oh well, who is John Galt?

[Ninian Dryhope]

What happens to the oil providers when their biggest customer doesn't buy oil?

[Chode]

[Havoc]

I didn't say that. That is a generalization you're making as an overreaching mistatement of my remarks. It is called dishonest argumentation. Try again.

[A Balrog of Morgoth]

With a tagline like...(President George and King George.. coincidence?)

One wonders. Tongue-in-cheek?

[Havoc]

My tagline is a reflection of the fact that I disagree with my president on a few things.. trade is one of them. I'm not an indoctrinate for Bush..

[RegulatorCountry]

"To get you to buy gold to increase his profits."

Over the past week or two, gold has fallen back substantially from its recent highs of $530.00 or so, now below $500.00/oz.

[Ninian Dryhope]

No paranoia involved, none at all.

Simply an usual ability to see connections and draw relevant conclusions, far beyond the less intelligent sort of people.

[LS]

Perhaps a bigger-than-expected shopping season, to go with the bigger-than-expected economic growth.

[Pylot]

You don't really think we would stop the economy here do you?? We use 25 out of every 100 barrels of oil produced.

The threat to the US from these oil suppliers demanding payment in Euros is that our outbound dollar flow would be seriously interrupted. That would have an enormous impact on you and me. As long as we increase the money supply everything is fine. Oil provides a great mechanism for moving our dollars out of the US. Disrupt that and there will be hades to pay.

Imagine that we had to purchase Euros in order to purchase oil.

That may not be the only reason we went after Saddam (which I totally support by the way) but you can bet that it was a factor.

In any case the connection to the currency that the oil producers accept in payment and the state of our economy may not be as distant as you assume.

[LS]

Not at all surprised. Investment demands dollars. This is supply-side 101/basic George Gilder.

I lived through the 1970s, and am MUCH less concerned about inflation than the impact of deflation. At least with inflation---unless it reaches Weimar Germany proportions---there is a psychology of "good times," but with deflation, studies have shown that even when people actually may be doing better, the perception of falling wages is depressing and has all sorts of spinoff effects.

[Ninian Dryhope]

So, do you think we invaded Iraq to keep them from selling their oil in Euros?

[Toddsterpatriot]

The threat to the US from these oil suppliers demanding payment in Euros is that our outbound dollar flow would be seriously interrupted. That would have an enormous impact on you and me. As long as we increase the money supply everything is fine. Oil provides a great mechanism for moving our dollars out of the US. Disrupt that and there will be hades to pay.

Imagine that we had to purchase Euros in order to purchase oil.

Do you notice the flaw in your reasoning?

[antaresequity]

Author shows himself to be a moonbat and thus he may be safely ignored.

I happen to subscribe to this so called 'moonbat'.

I can assure you, he is no moonbat.

The other 'moonbat' I subscribe to is a foreign currency analyst...and that 'moonbat' agrees with this 'moonbat'.

Both of these 'moonbats' have been right about 80% of the time this year...

Perhaps you could pose a counter argument in favor of massive inflationary fed practices, the desire for an inverted yield curve, surging trade deficits, surging debt, monetization of the debt by the fed, and surging commodity prices...

When you have your argument together let me know...

[Toddsterpatriot]

Perhaps you could pose a counter argument in favor of massive inflationary fed practices

You can show there is massive inflation?

surging trade deficits

Why are trade deficits bad?

surging debt

Surging household net worth.

monetization of the debt by the fed

Not happening.

and surging commodity prices...

Yeah, funny thing about supply and demand.....

[Ninian Dryhope]

Right, we went to Iraq to keep Iraq from selling its oil in Euros. The man is a genius. No wonder you pay him for his expertize.