Posted on 10/25/2008 7:10:52 AM PDT by Santiago de la Vega
Monetary Base grows $300 billion. ... 40% in 6 weeks! ... 4000% at annual rates!
(Excerpt) Read more at research.stlouisfed.org ...
Until now, the Fed has sterilized additions to the money supply by selling Treasuries as it added reserves.
The actions of the last 6 weeks show how near we are to a major meltdown in the system.
The US Treasury bond market remained steady in spite of the potential inflation from the flood of money in the system.
Let’s not panic now.
Thanks for the post!
The only way to fix fear at this point is let it ride out.
Wilbur Ross on Cavuto just said he is buying Municipal Bonds for the 6% tax free yield.
He is SHELTERING AGAINST OBAMA.
He said Obama would bring increases taxes and this manks tax free bonds more attractive.
Think about this folks, obama increases taxes to essentially FORCE people to put their cash with the government.
NO PRODUCTIVITY.
NO INVESTIMENT
NO INOVATION.
NOTHING.
Just paying to keep the beast of goverment tributed.
THIS CRASH IS THE OBAMA CRASH!
Obama is not just stupid, Obama is HARVARD stupid.
Agreed.
AIG has near exhaused it’s 100 billion, plus, Paulson kiss. AIG could end up, alone, eating that money.
Won’t this cash infusion eventually lead to inflation and higher interest rates?
The 'rat supercongress can fix that little oversight, right after they finish looting 401k's and university endowment funds.
Probably. But that's better than a bone crushing recession.
Doubtful, its not even close to the amount of wealth and debt destruction that is currently going on. 10x that was lost just in stocks alone in the last month.
Note the other two bursts in the rate of change graph you posted. The first was at the end of 1999 when the Fed made massive reserve injections just in case the banking system’s computers would have trouble making the shift to the new century, known at the time as the Y2K bug. That was a huge injection at the time.
The next massive injection was immediately following 9/11/01 when total chaos reigned in the banking system following the terrorist attacks.
And now we have the granddaddy of them all, the potential failure of the entire world-wide banking network and the Fed’s reaction is apparent, and huge compared to the previous traumas. In the earlier periods reserves were drained shortly thereafter and inflation remained low. Hopefully that will be the course of action in the next few months also.
I’m actually more concerned right now with the Fed inadvertently causing deflation than inflation, and will address that in one of the next comments if anyone is interested.
Comment away. Deflation of real property is killing me.
NO PRODUCTIVITY.
NO INVESTIMENT
NO INOVATION.
NOTHING.
And then Obama’s end goal for the personal wealth of private citizens:
LESS THAN NOTHING
in other words, the objective is to put the general population
into perpetual debt to the US guvmint.
Obama digs the idea of being the Uber-Mensch of share-croppers in the world.
I suppose Obama and Rev. Wright think of that as a groovy kind of
world and payback to all those bitter people clinging to their guns
and religion.
senator government was not a mistake.
People are not thinking that they boss will be cutting jobs under Obama.
The investor class is pulling money out of the ecconomy BECAUSE OF OBAMA.
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