they stopped publishing the M3 money supply, here's charts that are trying to determine it, I don't know if they're if they're for sure or just estimating it.
http://www.nowandfutures.com/key_stats.html
here's a simple hiden tax. They print an average of 6% more dollars a year, and they only give an average of 3% on bank accounts to account for inflation. Inflation is based on the Consumer Price Indexe (CPI) which is how much the average product, or service costs. So if inflation was 3% a year then that means prices rose 3%, but if there's 6% more dollars ofcourse prices would rise, what this means is that in general, if it weren't for that 6% rise in money supply the average pricse would go down 3%, and this is how it should be as production, and technology increases. Companies make more but they should also be lowering their prices some because of competition.
Mon Apr 23, 2007 12:44 am
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antanitis
Joined: 20 Mar 2007 Posts: 33 Location: northhills pennsylvania USA
buzneg said
"here's a simple hiden tax. They print an average of 6% more dollars a year, and they only give an average of 3% on bank accounts to account for inflation. Inflation is based on the Consumer Price Indexe (CPI) which is how much the average product, or service costs. So if inflation was 3% a year then that means prices rose 3%, but if there's 6% more dollars ofcourse prices would rise, what this means is that in general, if it weren't for that 6% rise in money supply the average pricse would go down 3%, and this is how it should be as production, and technology increases. Companies make more but they should also be lowering their prices some because of competition."
By looking at the 2nd chart on this link blow, I estimate that the average money supply increase is 6%/y and I know that the interest that most banks give to the client to "make-up" for inflation is only 3%/y. Money only represents value, if you add more money then the money that was there before must give up some of it's value. It's legalized counterfieting, although there's much worse I believe, but this is the simplest, and most for sure example I have. I heard that they make-up for this by giving corperations 10%, but it doesn't matter because it an't right to add money without adding it equally everywhere, and I suspect that it's just a way to make more jobs, but low value jobs that's bacically a forum of welfare.
Deflation should be happening, everyone thinks that inflatin goes to 0% and that's it, but it goes into the negative numbers and that's called deflation. As production increases, and businesses make more stuff then prices should go down, not just stay the same.
With all the automated stock trading out there, they don't really have an option other than inflating. They have to keep the money inflated to the point where the DOW stays at least steady, or there will be a huge sell-off.
With all the automated stock trading out there, they don't really have an option other than inflating. They have to keep the money inflated to the point where the DOW stays at least steady, or there will be a huge sell-off.
so they're making something look better then it actually is, and pumping up the bubble, right? Does that 10% that I hear companies get have anything to do with it?
