Wednesday, June 2, 2021

It’s All Funny Money

In the last 18 months the US has boosted its money supply (M3) by a whopping $4.5 trillion.  Any way  you look at it, this is a historically unprecedented event, both in size and speed. Including WWII.

Biggest Monetary Creation In US History

Where did all this money come from? Simple: it was almost entirely printed by the Fed, which during the same time has ballooned its balance sheet by $4 trillion.

Biggest Fed Balance Sheet Balloon In US History

What will ensue? If the above was undertaken by, say,Venezuela or Argentina the IMF would be screaming and yelling, and markets would have reduced their national currencies into TP. The US being an Empire, it gets the benefit of the doubt: “oh, they must know what they’re doing, they have a new economic/monetary theory to deal with this” ( known as MMT - modern monetary theory).  Biden is all in on this, by the way, and is calling for even more money to be printed.

(Aside: this is all so much butter on the toast of crypto scammers worldwide.  They have even learned Latin: fiat - not the car, eh?).

What’s the catch? The decline and fall of the Roman Empire took roughly 1,100 years and was obvious for at least three centuries before Constantinople fell to the Ottomans. The Ottoman Empire, in turn, fell around 400 years after its peak. The British and Spanish Empires took 200 years to succumb.  Finally, the Soviet Empire collapsed almost overnight, in less than 20 years after Afghanistan and Chernobyl. See the pattern?

America’s strength is based on a rock solid dollar as the undisputed storehouse of value worldwide.  It is now very rapidly being turned into funny money. If the Treasury and Fed continue printing without care, America’s collapse could end up being measured in months...

1 comment:

  1. Thank you for your kindness Hell... the blog was a window to a world I never imagined...

    These are interesting times; and we got the front row seats!