Secret M3 Monetization Scheme?
|
(Conspiracy Nation, 11/17/05)
-- The economic future is anyone's guess. "It is the best of times. It
is the worst of times," to paraphrase Charles Dickens.
Lacking a super-duper
confidential source who knows
all and whispers the shocking
details, one can consult a fortune teller, as in the image at
left.
Who knows? Maybe some web authors who reveal all via the secret source are using this same
fortune teller, unbeknownst to us all.
News from the Federal Reserve web site is that, "On March 23,
2006, the Board of Governors of the Federal Reserve System will cease
publication of the M3 monetary aggregate." (http://www.federalreserve.gov/releases/h6/discm3.htm)
This move to hide the M3 numbers roughly coincides with the
imminent arrival of Ben Bernanke as new chief of the "Federal" Reserve.
|
Why would they be hiding the M3 numbers? M3, according to "The Fed,"
consists of "M2 plus (1) balances in institutional money market mutual
funds; (2) large-denomination time deposits [amounts of $100,000 or
more]; (3) repurchase agreement liabilities of depository institutions
[denominations of $100,000 or more]...; and (4) Eurodollars held by
U.S. addressees at foreign branches of U.S. banks worldwide and at all
banking offices in the United Kingdom and Canada." (http://www.federalreserve.gov/releases/h6/)
As nearly as Conspiracy Nation
can discern, the "M Numbers" (M1, M2, and M3) show the amount of
dollars in circulation. M1 is the most volatile, equivalent to cash on
the loose. M2 is less volatile, equivalent to savings account deposits.
M3 is least volatile, equivalent to Rich
Folks Money which they park because they don't know what else to
do with all that money.
These M numbers are extremely important, yet they are almost
impossible to find in the mainstream press. They have been available at
the "Federal" Reserve web site, which now becomes furtive about M3.
One thing you can do with the M numbers is get a true idea of
inflation. "Nobel Laureate and professor Milton Friedman says,
'[I]nflation is always and everywhere a monetary phenomenon, in the
sense that it cannot occur without a more rapid increase in the
quantity of money than in output.' Increases in money supply are what
constitute inflation, and a general rise in prices is the symptom."
("What's Inflation?" by Walter E. Williams, http://www.worldnetdaily.com/news/article.asp?ARTICLE_ID=47426)
Suppose someone had found an easy way to transmute base metals into
gold. There would be plenty of gold, so we all would be wealthy, right?
Wrong. Were there to be a plethora of gold, the price of gold would
plummet. So too with the dollar: when the "Fed" increases the number of
dollars in circulation, the dollars are worth less, things cost more,
and you have inflation.
According to the M numbers, the rate of inflation this past year has
been about 6 percent. In January of 2004, M3 had been $8942.5 billion.
By January of 2005, M3 was at $9502.9 billion. Subtracting, you get an
increase of $560.4 billion for the year. Dividing $560.4 billion by
$8942.5 billion yields .06266, or about 6.3 percent.
The fortune teller answers, in reply to the question, "Why will they be hiding the M3 numbers?"
that "The fundamentals are sound."
In an economy based upon credit, it becomes necessary to keep upping
the money supply. Otherwise the entire bubble would collapse. The Federal Reserve is running a Ponzi
scheme. When there is major trouble with debt, especially with
government debt, one way to pay it off is to print more money.
"Alternatively, a central bank could monetize the budget deficit,
thereby inflating the economy. How so? By buying the government's debt
itself with freshly printed money. That's what the Fed did in the
1970s." ("Globalization is the key to economy," by Danielle DiMartino.
07:38 AM CDT on Thursday, October 6, 2005)
This is a stunning revelation for those old enough to remember the
inflation troubles of the 1970s. Is that what was really going on then,
that an enormous amount of money flooded the economy because government
debt had to be paid down?
So is this monetization of the debt
about to recur? Is that why the M3 numbers are about to become
top-secret? Note that this possible monetization need not be absolute
and therefore obvious. A rise in M3 of, say, 15 to 20 percent, thereby
significantly paying down the debt, would trigger 1970s-style
inflation, not German 1920s-style hyperinflation. Then would come the
ponderous economists moaning about the "mysterious inflation" which has
descended upon us. All the while, they
would know full well the true cause.
Don't look for answers to the above questions in the mainstream
press, which won't report the M number statistics, let alone the news
that M3 is about to become top-secret.
-------
Conspiracy Nation
http://www.shout.net/~bigred/cn.html