Powder Blue Report

News, finance, politics, sports, and fun from the west coast

Thursday, January 05, 2006

Look Out For Inflation, Here It Comes

Inflation has been around ever since the US government went off the gold standard and went exclusively with a fiat currency/monetary system. To prove my point, the purchasing power of a dollar has diminished by 98% since that that year. Anyway, Last November, the Federal Reserve Board quietly announced that it will no longer publish data about M3 which is the true money supply figure. This was astonishing, but not surprising. M3 is the broadest definition of the money supply: It includes coins, currency, checking accounts, money market funds, time deposits and institutional money market accounts. It is one of the best bellwethers for inflation. What does the Fed want to hide? My opinion is that they know that the day of reckoning is finally approaching. They know that hyper-inflation is soon to be at hand so better to try and hide pesky things like money supply figures. The upside to all of this is huge opportunity to make and protect your money with hard assets like gold and silver. I'm going to do a long post about this opportunity later in the week.


Post a Comment

<< Home