[muawiyah]

The money supply consists of a number of elements ~ cash is one of them. Credit or lines of credit is another. There are yet other forms.

For a variety of reasons (disastrous rise in price of oil, crash in home prices, even more productivity improvement in all sectors of our economy, and so forth) we suffered a severe reduction in the money supply. The loss is in excess of $6 trillion.

At some point deflation plus more cash should create a new equilibrium. Inflation can occur afterwards simply through creation of more wealth to be pledged as credit.

[Andy from Chapel Hill]

Velocity is way, way down as well.

[Tarpon]

The report I saw said that CASH in circulation went up 80%. Beck was talking about it a few days ago as well. And the inflation that it will cause. One of his shows he made a graphic.

Agree with others things mean money, but this was specifically cash being dumped in the market by the fed. Beck was talking about it in the vein that the promises made by Nixon for doing away with the gold standard have been tossed out the window.

But hell, there is so much manipulation going on who really knows what is going on.

This we do know — Obama lied, the economy died.