And so it begins

As this article points out, there is more to the Federal Reserve's recent announcement that they are going to stop reporting M3 data than meets the eye. What is M3 data? (for those who can't be bothered to read the link) M3 reports the total US dollars in circulation.

Why would the FedRes do that and who cares? Anyone remember their history lessons in school concerning the Great Depression? Remember your teachers telling you how people in Germany used to paper their walls with money because paper money was worthless? Did your Grandmother (like mine) or great-grandmother ever tell you how important gold was back then? The reason was because in order to fight inflation, the governments of the world printed off lots of money. With so much paper currency in the world, the value of money became negligible and only gold had any real value.

So listen up, because when the FedRes stops reporting on the amount of paper currency floating about there's a Really Good Reason Why.


That reason is because they don't want to let on that they are putting more and more currency into the market. The Feds have pumped up the money supply by 8% in the last year. They do this to fight inflation. But anyone with a knowledge of economic history knows where this road leads to. Depression. That is why savvy investors are liquidating and buying gold. Gold is the one hedge against a massive depression like we had in the 30's. So what has this done to the price of gold?

They've soared.

Gold is going through the roof. And now, with the price of gasoline going through the roof, inflation is about to explode. Making all those paper dollars worthless. Which in turn, drives up the price of gold even further.

And so it begins again. Welcome to economic hell. Hope you didn't have a future planned.