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Ben[_3_]
March 28th 09, 07:08 PM
Fed Planning 15-Fold Increase In US Monetary Base

by Eric deCarbonnel

The fed is planning moves that would more than double its balance-
sheet assets by September to $4.5 trillion from $1.9 trillion.
Whether expressing approval or concern over the fed's intentions,
most commentators fail to understand the real magnitude of the
projected expansion of the US monetary base because they don't take
into account the amount of dollars circulating abroad.

At least 70 percent of all US currency is held outside the country,
and this means the US monetary base is considerably smaller than the
fed's overall balance sheet. Take, for example, the true US domestic
money supply at the beginning of September 2008, before the fed
started its quantitative easing. From the Federal Reserve's website,
we know that currency in circulation was 833 Billion. This
translates as 583 Billion dollars circulating abroad (70 percent),
and 250 Billion dollars circulating domestically (30 percent). Since
the bank reserve balances held with Federal Reserve Banks were 12
billion, that gives us a 262 Billion domestic monetary base as of
September 2008. Now compare that to the projected US domestic
monetary base for September 2009 which is 3,818 billion (4,500
billion - 583 billion (dollars circulating abroad) - 99 billion
(other fed liabilities not part of the money supply)). The fed's
planned balance sheet expansion results in a 15-fold increase in the
base money supply.

262 Billion = US monetary base as of September 2008 (minus dollars
held abroad)

3,818 Billion = projected US monetary base in September 2009 (minus
dollars held abroad)

3,818 Billion / 262 Billion = 15-Fold Increase in US monetary base

This is a staggering devaluation of the US currency! It means that
for every dollar in America in September 2008, the fed is going to
create fourteen more of them!

http://www.marketskeptics.com/2009/03/fed-is-planning-15-fold-increase-in-us.html

Werner
March 28th 09, 10:51 PM
On Mar 28, 3:08*pm, Ben > wrote:
> Fed Planning 15-Fold Increase In US Monetary Base
>
> by Eric deCarbonnel
>
> The fed is planning moves that would more than double its balance-
> sheet assets by September to $4.5 trillion from $1.9 trillion.
> Whether expressing approval or concern over the fed's intentions,
> most commentators fail to understand the real magnitude of the
> projected expansion of the US monetary base because they don't take
> into account the amount of dollars circulating abroad.
>
> At least 70 percent of all US currency is held outside the country,
> and this means the US monetary base is considerably smaller than the
> fed's overall balance sheet. Take, for example, the true US domestic
> money supply at the beginning of September 2008, before the fed
> started its quantitative easing. From the Federal Reserve's website,
> we know that currency in circulation was 833 Billion. This
> translates as 583 Billion dollars circulating abroad (70 percent),
> and 250 Billion dollars circulating domestically (30 percent). Since
> the bank reserve balances held with Federal Reserve Banks were 12
> billion, that gives us a 262 Billion domestic monetary base as of
> September 2008. Now compare that to the projected US domestic
> monetary base for September 2009 which is 3,818 billion (4,500
> billion - 583 billion (dollars circulating abroad) - 99 billion
> (other fed liabilities not part of the money supply)). The fed's
> planned balance sheet expansion results in a 15-fold increase in the
> base money supply.
>
> 262 Billion = US monetary base as of September 2008 (minus dollars
> held abroad)
>
> 3,818 Billion = projected US monetary base in September 2009 (minus
> dollars held abroad)
>
> 3,818 Billion / 262 Billion = 15-Fold Increase in US monetary base
>
> This is a staggering devaluation of the US currency! It means that
> for every dollar in America in September 2008, the fed is going to
> create fourteen more of them!
>
> http://www.marketskeptics.com/2009/03/fed-is-planning-15-fold-increas...


and that doesn't count credit money which this base creates. So
multiply by at least 10.

"...government and the banking system have deliberately created
financial bubbles to shore up the economy, engender profits, and
maintain tax revenues."
http://www.rense.com/general85/chall.htm

March 28th 09, 11:34 PM
short sellers trying to drive down the dollar...


"THE BLACK HAND" is the name of the international
terrorist group that is causing all the problems.

Frog Britches[_2_]
March 29th 09, 07:02 AM
Ben wrote:
> Fed Planning 15-Fold Increase In US Monetary Base
>
> by Eric deCarbonnel
>
> The fed is planning moves that would more than double its balance-
> sheet assets by September to $4.5 trillion from $1.9 trillion.
> Whether expressing approval or concern over the fed's intentions,
> most commentators fail to understand the real magnitude of the
> projected expansion of the US monetary base because they don't take
> into account the amount of dollars circulating abroad.
>
> At least 70 percent of all US currency is held outside the country,
> and this means the US monetary base is considerably smaller than the
> fed's overall balance sheet. Take, for example, the true US domestic
> money supply at the beginning of September 2008, before the fed
> started its quantitative easing. From the Federal Reserve's website,
> we know that currency in circulation was 833 Billion. This
> translates as 583 Billion dollars circulating abroad (70 percent),
> and 250 Billion dollars circulating domestically (30 percent). Since
> the bank reserve balances held with Federal Reserve Banks were 12
> billion, that gives us a 262 Billion domestic monetary base as of
> September 2008. Now compare that to the projected US domestic
> monetary base for September 2009 which is 3,818 billion (4,500
> billion - 583 billion (dollars circulating abroad) - 99 billion
> (other fed liabilities not part of the money supply)). The fed's
> planned balance sheet expansion results in a 15-fold increase in the
> base money supply.
>
> 262 Billion = US monetary base as of September 2008 (minus dollars
> held abroad)
>
> 3,818 Billion = projected US monetary base in September 2009 (minus
> dollars held abroad)
>
> 3,818 Billion / 262 Billion = 15-Fold Increase in US monetary base
>
> This is a staggering devaluation of the US currency! It means that
> for every dollar in America in September 2008, the fed is going to
> create fourteen more of them!
>
> http://www.marketskeptics.com/2009/03/fed-is-planning-15-fold-increase-in-us.html
That's called devaluation.

Lantern
March 29th 09, 06:30 PM
What would enlighten things would be to distinguish between "Credit"
and "Currency". The "Monetary Base" or the "Currency Base" or the
"Credit Base" ? There is a huge difference between Currency and Credit
In my opinion.

March 29th 09, 06:34 PM
On Mar 29, 12:30*pm, Lantern > wrote:
> What would enlighten things would be to distinguish between "Credit"
> and "Currency". The "Monetary Base" or the "Currency Base" or the
> "Credit Base" ? There is a huge difference between Currency and Credit
> In my opinion.

correct. credit can be cut back, which is what we are going thru now.
currency once printed into circulation, is much harder to cut back on.