Thoughts Aloud

I have stumbled across an interesting source of financial charts. They have worked out a way to reconstruct M3, which the Fed quit reporting about the time they started inflating the money supply like crazy. It appears to be updated weekly. There are all manner of charts worth perusing there and many of them look like Al Gore’s hockey stick; but my favorite is:

It represents all the currency the FED has “printed” lately (although much of it is digital instead of paper). If one looks closely, there was about a trillion dollars in circulation in early 2008 and they doubled it by mid-summer. Then they had doubled it again in September and added another trillion by Christmas. So,there are nearly five times as many dollars in circulation today as there was a year ago. Our politicos are about to add another trillion in their stimulus package, and I fear no end is in sight. It is only a matter of time until all those dollars start looking for a shrinking supply of goods, and prices join the hockey stick trend. Gold is still cheap, folks. â—„Daveâ–º

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