The level of M2 - the total amount of money in circulation in the country - is not only helpful in deciphering the fair value for gold but also where the metal is headed by forecasting how the money stock will trend and...while gold doesn't move in lockstep with M2, it does follow M2 higher over time.
Read More »Search Results for: money supply
True or False: The Fed Can Control the Money Supply & Interest Rates?
Most economists (primarily Keynesians and monetarists) believe that authorities can control the money supply and interest rates, and most neo-Austrians believe that the Fed is all-powerful when it comes to inflating - that whatever inflation rate it wants, it simply manufactures. Is that true or false? Read on for the answer.
Read More »Gold Price Dependent on Extent of Money Supply NOT Direction of US Dollar Index – Here’s Why (+2K Views)
...When the USD starts to rise many assume that this is negative for paper gold ETFs such as GLD as well as physical gold. I'm sure you have heard it before, if the USD goes up then gold goes down, and vice versa...but, in reality, this "rule of thumb" isn't the case and, in actuality, it would be impossible for the USD and gold to trade inversely with each other. Let me explain.
Read More »True Money Supply Is Already Hyperinflationary! What’s Next? (+3K Views)
Economists are telling central banks to accelerate monetary growth even faster...to avoid a bank balance sheet implosion with all the deflationary consequences that implies. [As such,] the prospects for 2012, and thereafter, are for Total Money Supply to continue its hyperbolic trend - and when such a trend becomes established it becomes almost impossible to stop because the whole debt-based economy and the banking system would collapse. [Let me explain further.] Words: 550
Read More »These 5 Apocalyptic Engines Causing Hyperbolic Growth in US Money Supply
I recently wrote an article showing how US True Money Supply (TMS) appeared to be growing at a hyperbolic rate [see here], and that gold was also on a hyperbolic course...Hyperbolic growth in the quantity of money ends with hyperinflation... [and] both TMS and the dollar price of gold are pointing to a hyperinflationary outcome. This article explains why this might be so. Words: 764
Read More »Why Negative Real Interest Rates + Stimulative Money Supply = $10,000/ozt. Gold (+2K Views)
Question: What do you get when you mix negative real interest rates with stimulative money supply efforts by global central banks? Answer: An exceptionally potent formula for higher gold prices that could send gold to the unimaginable level of $10,000 an ounce. [Let me explain further.] Words: 1049
Read More »Make Money! Time the Market Using Market Strength Indicators – Here’s How (+8K Views)
There are many indicators available that provide information on stock and index movement to help you time the market and make money. Market strength and volatility are two such categories of indicators and a description of six of them are described in this "cut and save" article. Read on! Words: 974
Read More »A Close Look At the U.S. Dollar: Shelf Life, Supply & Total Value By Denomination (+3K Views)
Today’s infographic from TitleMax illustrates the U.S. supply of currency notes, the shelf life of each type of bill, and how the whole system works as a whole.
Read More »What Will Cause Higher Gold Prices? Huge Money Creation OR a Weakening USD?
The expectation for a much higher gold price resulting from huge money creation by the Federal Reserve is shared universally by investors, analysts, and others BUT that is simply not the case. Here's why.
Read More »The World’s Money: Why & How It Eventually Meets Its End
Only 8% of the world's money exists in a physical state and the following infographic illustrates why and how it eventually meets its end.
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