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OT Money supply

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  • OT Money supply

    I found this on a web site. What do you all think is it a pump and dump for gold&silver markets? Or is it another crazy person's ravings?

    Hello Truth and Freedom Seekers!

    This is NOT a Drill! Read and Heed this Notice! Get your assets liquid and move currency and electronic balances to Substance! Ride the metals up instead of watching your USD currency values crash and burn! SILVER!!! and GOLD!!!

    Read Below! Share this info IMMEDIATELY!






    Six months ago, the Federal Reserve quietly announced that as of March 20, 2006, they would no longer publish "M3" Data. The "M3" was the amount of cash the government printed to put into circulation, propping-up the U.S. economy.

    As of eight days ago, M3 data is no longer being reported, so there is no way for the public, investors or bond holders to know how much currency exists - and no way to gauge how much a "dollar" is truly worth.

    Three separate sources in the U.S. Treasury have stated this week, the federal reserve ordered TWO TRILLION dollars to be printed! The U.S. Treasury is allegedly running printing presses 24/7 to accommodate that order. Treasury employees were specifically ORDERED not to talk about this to anyone because it could cause economic collapse.

    Even worse, Monitors indicate that the whole Immigration Amnesty Debate (especially the well-funded well-attended protests) was deliberately scheduled to take place now, to divert attention from this massive
    printing/devaluation of the U.S. Dollar. The feds allegedly figured that by the time anyone found out, they could smooth things over. They figured wrong. Surprise, boys, you've been exposed!

    Watch for Gold and silver to skyrocket in price within days as the world wises up and begins dumping the U.S. Dollar.

    UPDATE: As of 9:05 AM this morning 6 Apr. 06, Silver is at a ten year high and Gold is within a few dollars of a 25year high. The U.S. Dollar is falling against all major world currencies. . More details as they
    become available.
    NRA member

    Gun control is using both hands

  • #2
    sounds like a complete crock, just some good old fashioned fear mongering. (hey anything can happen, but this guy knows not of what he speaks). increasing the money supply has nothing to do with either printing money or "propping up" the economy, besides M3 has nothing to do with printed cash. M3 is M1 + M2 + some less liquid stuff - its the total money available (money NOT cash) in the country, nothing to do with printed cash. while many are bearish on the US$ its nothing to do with this turkey's reasons - the fed increases or decrease the money supply by buying/selling bonds. this guy must have been fired from his job of writing emails on behalf of some disposed Nigerian dictator


    • #3
      How bout a link


      • #4
        When investigated, most of those are discovered to be put out by folks who sell the stuff recommended, or "how-to" books about getting rich with the stuff recommended.

        Now, "helicopter Ben" DOES favor running the presses overtime....

        And, international trade probably WILL soon be conducted exclusively in Euros and possibly someday in Yuan.

        But that is another matter.

        Keep eye on ball.
        Hashim Khan


        • #5
          I've been hearing stuff like this off and on for the last 30 years.Go ahead and buy. but if you want to invest in something solid, buy real estate.


          • #6
            In the United States, most money is electronic rather than paper currency. Overseas, I suspect the US Treasury is competing with other governments as to who can do the better job printing United States Currency. Who other than governments could counterfeit well enough to cause the increasingly frequent redesigns of US currency? Charles


            • #7
              Don't panic, yet

              The thing to watch will be the Euro. A shift to international trade in Euros will definately hurt the USD value. In that import stuff (oil) will cost more and the USD will be worth less, a two for one bad situation for US. How soon and how fast this will happen is just a quess. But the possibility can not be totally dismissed. As for gold being the "safe and sure" hedge, believe whatever you want, I have never been very good at predicting the future.
              Today I will gladly share my experience and advice, for there no sweeter words than "I told you so."


              • #8
                Gold is a terrible investment vehicle. I won't touch it. The intrinsic value of gold as an industrial commodity is far below the market price. The market price is determined not by supply and demand as with other commodities but by highly irrational speculation as to what other highly irrational speculators might pay for it. The actual gold is rarely ever traded except as an industrial metal. All that is traded is promises to deliver which are commonly not exercised. The market value of gold is not related in any way to the quantity of gold existing, produced or consumed.

                Printing of money is/was a way for government to make money, literally. It's called seigniorage. It costs the US government a few cents to print a one dollar bill and the same to make a 100 dollar bill yet they sell it in the market at face value. This is a huge and irresistable source of income for governments, especially when they have huge and intractable deficits.

                As for the US currency itself, the US government has largely lost control of it. The majority of US currency trades outside of the US and is not susceptible to being removed from circulation by US banks and returned to the government. As of 1998 the estimate by the government is that about 3/4 of $100 bills circulate outside of the USA (Note below) This poses a huge problem for the US central bank as it means they have only the proportion that does circulate in the US left to exercise monetary policy on. The market for US currency outside of the US is determined by those who trade it, not the US government. This is especially problematic since this value is highly susceptible to factors unrelated to economics but instead perception of value.

                This perception is strongly influenced by US foreign policy. When US foreign policy is percieved in a negative way outside of the US the trading value of the US currency drops. Us foreign policy and the external value of the US dollar are now tightly coupled and cannot be decoupled. When the US government ignores this reality it does so at extreme risk to the economy, which is the case today.

                Within that framework, our currency usage overseas has grown dramatically. Over the past ten years, demand has grown at about 5 percent a year for $100 bills. To the extent that now about 75 percent of our $100 bills, we believe are held overseas and, as Mr. Allison said, about two-thirds of our overall currency are held overseas.

                Free software for calculating bolt circles and similar: Click Here


                • #9
                  regarding money supply, I don't think that's true, seigniorage is antiquated and is not part of the US's money supply formula. Monetary supply in the US comes from the Fed buying government bonds, this creates a fed deposit in a bank, considered cash to their reserve requirements, the money multiplier then as for every, say $.05 in fed deposits, a bank can loan out $1.00. the fed (central bank) buying bonds is the modern equivalent of "printing money"


                  • #10
                    the price of EVEYTHING is determined by supply and demand. It's just that some S/D isn't rational. Otherwise futures trading would be a sure thing.


                    • #11
                      he price of EVEYTHING is determined by supply and demand.
                      Gold is an exception. Gold is rarely actually traded. Only pieces of paper that represent a promise to supply gold is the usual form of trading. Excepting the investors that actually hold the metal the only people that take delivery are those who actually have a use for the metal. This is far, far smaller than the supply which is why there are large reserves of gold around the world. The major exception to this is jewelery which accounts for the largest amount of gold used each year. However, this does not result in a reduction of supply as jewelery is also one of the largest sources of gold each year.

                      Since most of the gold ever mined still exists above ground in some recoverable form and much of it can be recovered very easily there is never a shortage of gold. Gold is not subject to supply and demand market economics in the usual way that other commodities are.
                      Free software for calculating bolt circles and similar: Click Here


                      • #12
                        Something Solid

                        Money hm it does burns doesnt it. Also if you have money now buy guns and ammo just to be paranoid. Perhaps a few 300 gallon tanks of fuel also and some big dogs. How about a fence around youe shack. I honestly feel people worry too much and should perhaps stick to machining trivia and interesting anecdotes of the home shop type. This is a machinist board if nearly everyone with a computer and way too much time on there hands seem to have, Lets get machining stuff happening and less other useless stuff. Thanx


                        • #13

                          In a speech Adolph Hitler said: Do you want to buy cannons or bread? WITH GUNS, you can take food and bread, you can take land, you can take prosperity..

                          And the german public responded: GUNS GUNS GUNS..

                          Personally, I am currently so busy I hardly have time to eat and shower. I like it that way.
                          I did buy a new gun thou, a hideaway I can keep close for snakes, and vermin.

                          Gee, I can still vote and buy weapons. HURRAH for the American way..
                          Excuse me, I farted.


                          • #14
                            Originally posted by Evan
                            Gold is an exception.
                            No, Evan... Gold is not an exception.

                            The irrational demand for gold on the part of speculators and erstwhile investors is what drives the price up. The reasons are irrelevant. What is relevant is the fact that the demand does exist.
                            The entire content of this post is copyright by, and is the sole property of, the author. No assignment
                            of title nor right of publication shall ensue from presentation of this material on any computer site.


                            • #15

                              Originally posted by Leigh
                              No, Evan... Gold is not an exception.
                              The irrational demand for gold on the part of speculators and erstwhile investors is what drives the price up. The reasons are irrelevant. What is relevant is the fact that the demand does exist.
                              I have heard that there is money to be made from personalised number plates? .......Due to an irrational demand?
                              Should I invest in this market?
                              Or should I just signwrite some name/number/remark on the rear of my vehicle and spend my $500 elsewhere??