Re: OT: Currency Crisis Brewing?

On Oct 5, 10:14 pm, "Beldin the Sorcerer" <beldin...@xxxxxxxxxxx>
wrote:
"Alim Nassor" <alimnas...@xxxxxxxxx> wrote in message

news:17168caa-50ee-42a2-a9e2-f057446cfc00@xxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
On Oct 5, 9:25 pm, "Beldin the Sorcerer" <beldin...@xxxxxxxxxxx>
wrote:





"Alim Nassor" <alimnas...@xxxxxxxxx> wrote in message

news:ef6bb47e-b428-4560-b8a2-00743a4d91da@xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
On Oct 5, 8:14 pm, "Stephen Jacobs" <jac...@xxxxxxxxxxx> wrote:

"Alim Nassor" <alimnas...@xxxxxxxxx> wrote in message

news:77c096b9-f1d7-457e-9fb4-0d2ade986930@xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
On Oct 5, 1:00 pm, "lawho...@xxxxxxxxxx" <lawho...@xxxxxxxxxx> wrote:
................

I believe we are in for a currency crash. The US dollar is currently
being debased at a rate never before seen, by dilution caused by the
expansion of the money supply and by the astronomical debt being run
up by the government.

This error is worth correcting (once). The narrowest estimate of money
supply, M1, roughly equivalent to cash in pocket, has been expanding
(there's some evidence that it may have stabilized). But M2, which
includes
things more like savings accounts than like checking accounts has been
declining of late, and the best estimate of M3, which includes things
like
CDs and very large savings accounts has been declining more. (for
charts:http://www.shadowstats.com/alternate_data/money-supply)(Unfortunately,
the
3 1/2 year charts are less apt than either 1-year or 20-year charts
would
be--you can at least imagine your own 1-year chart) While M3 is mostly
of
interest to investors (part of why it is no longer officially published)
M2
is generally more interesting to economists than M1. Government actions
that increase the money supply tend to be visible as such, but things
like
bank failures and lending suspensions that decrease the money supply
tend
not to be as visible.

I have been buying silver and gold ang ammunition for the last year.
Silver and gold as a hedge, and ammo, just because.- Hide quoted
text -

- Show quoted text -

The only thing declining in the money supply is the rate of growth in
the M2 and M3. The actual amount of each has increased greatly

From mid 2005 until the middle of 2008 the M1 expanded at a rate
that averaged essentially zero. But from late 2008 till now it has
expanded at an almost 20% rate. The M1 is the closest measurement of
the actual amount of currency in circulation.
***
Which is largely irrelevent.
What matters is the relative ability to purchase.
***

The M3 growth has of course declined because of the economic
downturn. The M3 has seen a drop from almost 18% growth to less than
4% The M2 rate of growth has declined since the start of
2009,however its growth levels is still well above the average from
2005 to mid 2008.

***
Alim, you're losing your mind.
***

If you look at the actual amount of each, the M1 was about 1.350
trillion in 2007 and it has zoomed to over 1.650 trillion now.
***
And what has the population done?
***

The M2 was 7 trillion in 2007 and is now just under 8.5 trillion.

The M3 was 10.2 trillion at the start of 2007 and is now approaching
15 trillion dollars.

The money supply is increasing at a rate the will likely cause very
high inflation in the future. I think the current deflation we are
seeing will come to a stop in the next 2 to 3 years followed by
disastrous inflation.
***
It won't do a thing.- Hide quoted text -

- Show quoted text -

All I have done is present facts about the money supply that you can
easily check for yourself, and my opinion of what it could lead to.

You have presented no facts and as usual respond almost entirely with
childish insults.
***
Let's play a game :

What's not a part of M2, that can yet drive prices up?

Here's the definitions :
  a.. M0: Notes and coins (currency) in circulation and in bank vaults.[8]
In some countries, such as the United Kingdom, M0 includes bank reserves, so
M0 is referred to as the monetary base, or narrow money.[9]
  a.. MB: Equals M0 + reserves which commercial banks hold in their accounts
with the central bank (minimum reserves and excess reserves). MB is referred
to as the monetary base or total currency.[10] This is the base from which
other forms of money (like checking deposits, listed below) are created and
is traditionally the most liquid measure of the money supply. [11]
  a.. M1: M1 includes funds that are readily accessible for spending. M1
consists of: (1) currency outside the U.S. Treasury, Federal Reserve Banks,
and the vaults of depository institutions; (2) traveler's checks of nonbank
issuers; (3) demand deposits; and (4) other checkable deposits (OCDs), which
consist primarily of negotiable order of withdrawal (NOW) accounts at
depository institutions and credit union share draft accounts. [12] Bank
reserves are not included in M1.
  a.. M2: Equals M1 + savings deposits, time deposits less than $100,000 and
money market deposit accounts for individuals. M2 represents money and
"close substitutes" for money.[13] M2 is a broader classification of money
than M1. Economists use M2 when looking to quantify the amount of money in
circulation and trying to explain different economic monetary conditions. M2
is a key economic indicator used to forecast inflation.[14]- Hide quoted text -

- Show quoted text -

I'm not going to play your game where you hunted up some data on
google to try to come up with an exam.

You made claims that the increase in the money supply would not have
an effect because the US population had expanded at a faster rate.

I showed facts that prove that wrong. Address that.
.

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