Have You Seen the Amazing St. Louis Fed Money Supply Chart as Featured on Glenn Beck TV Today? PDF Print E-mail
Written by Larry Greenley   
Thursday, 29 January 2009 21:45

Concerned about rampant inflation in the near future due to the unprecedented money creation activities of the Fed in recent months? If so, you must read on!

If you're one of those concerned Americans who greatly missed their daily "fix" of the Glenn Beck TV Show on CNN when his show was cancelled, but haven't gotten into the habit of watching his new show on FoxNews at 5 PM ET each weekday, then you probably missed one of his most interesting segments ever.

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This graph of the U.S. money supply, 1918-2008, obtained from the St. Louis Federal Reserve research department website that Glenn showed us today is almost unbelievable. It shows an amazing spike in the money supply for 2008. However, we do know that an amazing amount of money has been created by the Federal Reserve in recent months, so the graph is consistent with our suspicions.

Of course all of you Austrian economists and Ron Paul fans out there know what's going to happen to the value of the dollar when the money supply increases in a big way. Going down fast!

Here's a link to the above chart from the St. Louis Fed's website: http://research.stlouisfed.org/fred2/series/AMBNS.

Here's a video of the segment from today's show where Glenn narrates the highpoints of the chart in a very showbiz way.

 

Who knows. Maybe someone will debunk this St. Louis Fed chart in the coming days. But it sure does appear real today.

January 30: Now it's the next day and I've decided to refine a little what I've said in the article above regarding the St. Louis Fed chart. I've done some further research and sure enough many people have been noticing the hockey stick phenomenon of this St. Louis Adjusted Monetary Base chart during the past few months, and they think it reflects an unprecedented inflationary policy by the Fed. To further clarify the St. Louis Fed chart, "monetary base" is defined as follows:

Sum of reserve accounts of financial institutions at Federal Reserve Banks, currency in circulation (currency held by the public and in the vaults of depository institutions). The major source of the adjusted monetary base is federal reserve credit. The monetary base, as the ultimate source of the nation's money supply , is controllable, at least to some degree, by Federal Reserve monetary policy. The adjusted monetary base data is compiled weekly by the Federal Reserve Board and the Federal Reserve Bank of St. Louis, and is adjusted seasonally.

 

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5410
GaryRLewis
January 31, 2009
24.238.80.195
Votes: +0
Time to invest in gold?

Well, it appears that purchasing gold right about now would be a sensible investment before things take another dive. We've been playing with this Monopoly money a little too long. Has anyone out there bought gold bullion before? Where did you purchase it? Has anyone heard of bullionvault.com?

2981
Ethan
February 01, 2009
75.144.178.125
Votes: +0
...

I've used the northwest territorial mint a few times for silver. Gold is a bit to much for me.

http://www.nwtmint.com/

0
mfwic
February 01, 2009
75.71.52.5
Votes: +2
...

Please take a look at the real measures of money supply, M1, M2 and MZM. Currency in circulation is just the paper money. Most of our money is kept in savings and checking accounts. These accounts dwarf the currrency in circulation and the adjusted monetary base. The adjusted monetary base is basically the monetary policy of the federal reserve. When the first $350 billion was released last fall that is the spike in the chart shown by Glenn Beck. Its not a secret or a surprise, but it’s also not alarming once you compare to the size of MZM. As of Jan 2009 MZM is ~$9 Trillion, which dwarfs the $350 billion spike in monetary base.

0
Pat Henry
February 02, 2009
189.130.23.23
Votes: +1
Real money

May I suggest http://www.silverandgoldaremoney.com/.

This calculator allows one to begin NOW to trade with others on the basis of current silver and gold prices. Yes, you can use coins and fractions for purchases, provided you both agree.

And if you click on the funny man at the top right of the page, you'll be taken to a site with much more information from a very trusted Constitutionalist.

0
Pat Henry
February 02, 2009
189.130.23.23
Votes: +0
mzm, etc.

I'm no economist. Maybe it's not "alarming" to some that the Fed is printing a huge amount of cash backed by nothing - since ALL of it is created that way.

But when they print more for CIRCULATION, this will be vastly multiplied by the banking system (as they loan it all, then add that plus interest to their "assets" from which they can loan yet more). And all of that added to the supply makes each of the dollars I hold worth that much less. As people realize this, prices will rise. And usually our wages and investment income (at least that which is denominated in dollars) does not keep pace. So we lose at both ends.

Going one step further, these policies which will kill the (falsely named) "dollar" mean an even greater devaluation somewhere down the road (i.e., however long extenuated, before my retirement). Okay, an example. Russian rubles were devalued, and a man's life savings bought a pair of sneakers or a bicycle in the 'new rubles' that replaced them.

Less drastic and more recent: German's who held marks had to turn in their currency for Euros, at about two to one nominal value. That cut their holdings in half. But wait! Merchants kept their nominal prices the same, though now valued in Euros, so those holding marks now had 1/4 the purchasing power.

Interesting way to eat up people's capital, no?

0
Rodbabcock
February 03, 2009
76.14.215.72
Votes: +1
In reference to mfwic

Apparently you have trouble reading graphs, the chart Glenn Beck shows, shows a spike of over 600 Billion. The chart that GB is showing by the way is M2.

Before you ridicule next time please research your position.

M1 is a measure of total money supply. The M1 money supply includes only cash in circulation plus checkable demand deposits.

M2 is a measure of total money supply. M2 includes everything in M1 and also savings and other time deposits

M3 is all of m2 + large time deposits, institutional money-market funds, short-term repurchase agreements, along with other larger liquid assets

MZM represents all money in M2 less the time deposits, plus all money market funds

0
singledad1234
February 05, 2009
69.41.203.29
Votes: -1
fourty two year old man One woman wanted

there will be a ten year depression there will be civil war in america
there will be cross border troops to canada
I live in the country
I just want to marry a woman that loves me and lets me love her
grow my own food and chickens and milk a cow
and have eggs
and wait cause the next ten years is going to be HELL
if you believe in the depression
and you want to live in canada
Email me
I am fourty two
Integrity@cyg.net

0
Vermonter
February 09, 2009
24.63.202.89
Votes: +0
buying gold?

I also would like to buy gold, but which company do you buy from? Anyone heard of ITM trading? Any tips appreciated.

0
Random Passerby
March 02, 2009
122.29.30.211
Votes: -1
Buying Gold

http://www.kitco.com/

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